Development Finance

What is Development Finance?

Property 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 loan to fund the project only during the build. Once the project has been built out, the loan is usually repaid through the sale of the property, or refinance

Development finance remains available for both residential and commercial development projects within the UK. Funding can be arranged for smaller conversion or refurbishment projects through to large scale new build housing or mised use developments.

Finance is generally available for up to 90% of total project costs and 70% of end values (GDV) dependent upon the characteristics of each project. However in some cases it is possible for 100% funding to be arranged.

Funding is generally structured on an interest only basis, with interest either covered monthly or rolled up withing the aggregate loan facility, with funds drawn down in stages as the development progresses, against monitoring surveyor certificates.