Property Development Funding in the UK
Whether it’s a major refurbishment, a new build or a ‘ground-up’ development we can offer finance tailored specifically to your project and individual requirements.
We can source funding for residential, commercial, industrial, mixed-use projects as well as part furnished developments.
We’re able to provide property development loans equivalent to 75% of the estimated gross development value (GDV) of the project. For experienced property developers, we can often secure 100% funding to acquire a development site and build out to completion.
Funding Structures Available
- Standard development facilities as a first charge
- Mezzanine or ‘top-up’ debt as a second charge (where first charge lenders allow)
- Joint Venture (JV) lending
- Up to 100% funding to acquire a development site and build out to completion (subject to experience)
Bridging Finance for Property Developers
For smaller development projects, bridging finance can often be used to ‘bridge’ any gap in funding. This can be used for both light refurbishments and heavy refurbishments, from properties requiring finishing off such as kitchens, bathrooms and other non-structural changes to major works that may require planning permission.
Bridging finance can also be used to fund the marketing period once a development completes.
What types of projects are supported
- Residential housing
- Commercial property including single build and multiple units
- Mixed-use commercial and residential units (semi-commercial)
- Purpose-built student accommodation
- Refurbishments and Conversions
- Purpose-built such as nursing care homes
Summary of current key underwriting criteria
- Applications should be supported by good evidence for local demand
- If properties are to be retained on completion, long term refinance options are available
- Developments ought to show sufficient margin to absorb any possible fluctuations in the anticipated GDV of the project
- The borrower or proposed main contractor should have a good CV and able to demonstrate relevant experience