Development finance funds the two expensive halves of any property project: buying the site and building on it. From a single dwelling in Salford to a block of flats conversion in Leeds city centre, it covers ground-up construction, change-of-use conversions and heavy refurbishments that standard lending will not support. Funds are released in stages as the build passes agreed milestones, which keeps borrowing costs down because you only pay interest on what has been drawn.
How the Funding Is Structured
Lenders assess development deals against gross development value, the worth of the finished scheme, and typically lend up to around 70% of it once build costs are included. You contribute the balance through cash, equity already in the site, or additional mezzanine funding where the numbers justify it. Each drawdown is checked by a monitoring surveyor who confirms the works match the programme before the next stage is released. Interest rolls up alongside the facility rather than being paid monthly, so there is no drain on your cash flow while the project runs.
First-time developers are welcome with several lenders, particularly on smaller schemes with a professional team behind them. Experience changes pricing rather than eligibility: the stronger your track record, the keener the terms. Where a build finishes but units sell slowly, development exit finance can refinance the maturing loan onto cheaper terms while sales complete without pressure.
Why Developers Bring Us Their Projects
We package developments properly from day one: appraised costs, realistic programmes and credible exit strategies, presented to the specialist lenders most likely to back that specific scheme. Because we know each lender's appetite, whether they favour residential sales, permitted development conversions or mixed-use schemes, cases go to the right desk first time, which saves weeks of wasted applications.
If you have a site under offer in Manchester, a planning permission expiring, or a conversion opportunity in Leeds, tell us about the project. Send the purchase price, build costs and expected end value, and we will come back with an indication of what can be borrowed, the likely structure and an outline of total cost, usually within one working day.
