Development Finance

What is Development Finance?

Development Finance is a type of funding used to finance the construction, conversion, or heavy refurbishment of buildings. The loan is usually set up as a short-term funding option generally for between 6-18 months, to assist with the purchase costs and build costs, to fund the project only during the build.

The loan is secured on the value of the land; sometimes a lender will take security of another property if the amounts needed are in excess of the land valuation.

Specialist development finance lenders will take the future value of the property into consideration when agreeing a loan, unlike traditional mortgage lenders who consider only the value of the property at the purchase date.

The process:

  • You submit an application which includes how much you paid/intend to pay for the site/ property, your development or refurbishment costs, professional fees and build timescales
  • You will be offered some terms from a lender based on this information and supporting evidence
  • Credit searches will be run on your existing finances, experiences and the development location
  • Once the loan has been approved there will be ongoing monitoring of your project, which usually entails the lender visiting the site regularly
  • Funds are generally released at pre agreed stages of build, which may require certification by an architect  

Is Development Finance right for me?

Yes, if you want a short term loan to help you through your development project, you’re confident you’ll be able to repay the loan once the project is finished, and you can provide all of the paperwork needed to access the development loan.

If you can comfortably fulfil these requirements, then a development loan might be what you need to support you through your project.

Top Tips – what a lender will need to see

  • Current value of property if owned or purchase price
  • Predicted end value
  • Your build or renovation costs
  • Timescale for the development
  • CV of experience
  • Details of professionals involved with your project
  • Copy of planning permission
  • Building regulations
  • Details of any Section 106s or any planning restriction if applicable


Connect with accredited finance partners

Please fill out the following form to be directed to our finance partners, where you can complete your application.

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