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Property Development Finance: The Complete Guide
Property development finance is short-term secured lending that funds the purchase of a site and the cost of building on it, released in stages as the work progresses and repaid from the sale or refinance of the finished scheme. Senior lenders typically advance up to 60 to 70% of the gross development value, with pricing from around 6.5% a year for experienced developers on straightforward schemes.
This is our complete library on the subject, organised the way a scheme actually runs: getting started, appraising the deal, buying land and securing planning, structuring the capital stack, managing the build and planning the exit. Start with how property development loans work if you are new to it, or jump to the cluster you need.
We arrange development finance across a panel of 100+ lenders. Use the calculators to test your numbers, then submit your deal when you want terms.
- Guides
- 139
- Calculators
- 7
- Comparisons
- 2
The guide, by topic
Everything in one place,
organised by topic.
Fundamentals
How development finance works, who lends and how it compares with other products.
- Property Development Loans: How Development Finance Works
- Residential Development Finance: Rates, Criteria & How It Works
- Commercial Property Development Finance: A Practical Guide
- Ground-Up Development Finance: New Build Funding Explained
- Multi-Unit Development Finance: Funding 5-50 Unit Schemes
- Phased Development Finance: Funding Multi-Phase Building Projects
- Development Finance Brokers: What They Do and How to Choose One
- Bank vs Specialist Development Finance: Pros, Cons and When to Use Each
- Alternative Lenders in Development Finance: Beyond the High Street
- Bridge First, Then Development Finance: When Bridging Comes First
- Bridging Loan vs Development Finance: Total Cost Worked Example
- Refurbishment Finance vs Development Finance: Which Fits Your Project?
- Senior Debt in Development Finance: Understanding First-Charge Lending
- Property Development Finance in Scotland: How It Works
Getting started and borrower profiles
First schemes, track record, credit history, equity and 100% funding.
- How to Get Into Property Development: A Practical UK Route Map
- Can I Get Development Finance With No Track Record?
- First Development Finance Playbook: Site to Exit, Step by Step
- First-Time Developer Mistakes and How to Present Limited Experience
- How Development Lenders Assess Your Credit History
- Development Finance With CCJs or Defaults: Your Funding Options
- How 100% Development Funding Is Structured: JV, Mezzanine, Security
- Is 100% Development Finance Possible? Who Qualifies and Alternatives
- Joint Borrower Development Finance: Partnerships and Multiple Directors
- Development Finance for Foreign Nationals: Investing in UK Property
- How Much Equity Do You Need for Development Finance?
- How to Fund Your Equity Contribution: Land, JV Partners, Mezzanine
- Portfolio Development Finance: Funding Multiple Projects Simultaneously
Appraisal and valuation
GDV, residual land value, Red Book valuations and making the numbers stack up.
- How to Calculate GDV: Gross Development Value Explained
- The Residual Land Valuation Method: How Developers Price Sites
- Commercial Property Valuation Methods: The Five RICS Approaches
- GDV vs Market Value: Understanding the Difference for Finance
- Finding Comparable Evidence for GDV: Sources and Methodology
- The Cost Approach to Valuation: When Lenders Use Build Cost Methods
- The 180-Day Valuation: Why Lenders Discount Your Property Value
- Site Value vs Completed Value: How Lenders Calculate Your Loan
- Reinstatement Valuations for Development Finance Insurance
- RICS Red Book Valuations for Development: What Lenders Require
- Development Valuation Came in Low? Practical Steps to Take Now
- Development Valuation Appeals: The Formal Process Step by Step
- The Monitoring Surveyor's Role in Drawdowns and Valuations
- How to Write a Development Appraisal That Lenders Love
- Development Appraisal Sensitivity Testing: Stress-Testing Your GDV
- Build Cost Estimates for Development Finance: What Lenders Accept
- Development Finance and Profit Margins: What Return Do Lenders Expect
Rates, fees and the market
What development finance costs today and where the market is heading.
- Current UK Development Finance Rates: Rate Table by Product
- Development Finance Interest Rate Trends Since 2020: Analysis
- UK Development Finance Market Overview: Lenders, Appetite, Outlook
- How Development Finance Lending Criteria Have Changed Since 2020
- Regional Development Hotspots in the UK: Where to Invest in 2026
- The True Cost of Development Finance: A Complete Fee Breakdown
- Hidden Arrangement Fees in Development Finance: What Lenders Don't Tell You
- Broker Fees in Development Finance: What's Fair and What's Excessive
- Exit Fees on Development Loans: How They Erode Your Profit Margin
- Extension Fees on Development Loans: When Your Project Runs Over
- Non-Utilisation Fees: The Charge for Money You Haven't Borrowed
- Default Interest Rates Explained: The Penalty That Can Sink Your Scheme
- Legal Fees in Property Development Finance: Both Sides of the Bill
- Valuation Fees for Development Projects: RICS Red Book Costs Explained
- Insurance Requirements in Development Finance: Costs You Can't Avoid
- Title Indemnity Insurance: When Your Legal Pack Creates Extra Costs
- Building Control Fees and Development Finance: Satisfying Lender Requirements
- Quantity Surveyor Costs: When Lenders Require Independent QS Reports
- How Much Does a Monitoring Surveyor Cost? Fees Explained
- Interest Roll-Up in Development Finance: How Capitalised Interest Works
Land and planning
Buying land, planning permission, Section 106 and CIL, and site legal issues.
- Finance for Buying Land: Every UK Funding Route Compared
- Land Loans With Planning Permission: How to Finance a Consented Site
- Buying Land Without Planning Permission or Agricultural Land
- Can You Get a Mortgage for Land to Self-Build? Plot Buyers' Q&A
- Land Banking Finance: How to Fund Strategic Land for the Long Term
- Buying Land Before Planning: How to Fund a Pre-Planning Purchase
- Outline vs Full Planning Permission: What Each Unlocks With Lenders
- Funding the Planning Stage: Costs While Your Application Is Decided
- How Much Do Section 106 and CIL Cost? A Developer's Cost Guide
- CIL and Section 106: Legal Triggers, Payment Timing and Lenders
- Financing Section 106 Affordable Housing and Registered Provider Sales
- Rights of Way and Development Finance: Easement Issues for Developers
- Restrictive Covenants in Development Finance: Title Issues Explained
- Environmental Searches for Development Finance: Contamination Risks
- Listed Building Consent and Development Finance: Heritage Constraints
- Party Wall Agreements and Development Finance: Legal Requirements
- Land Registry Requirements for Development Finance Applications
Scheme types
HMO, build to rent, care homes, student housing, conversions and refurbishment.
- HMO Development Finance for Ground-Up and Large HMO Schemes
- HMO Conversion Finance: Converting a House Into an HMO
- How HMOs Are Valued: Room-by-Room vs Bricks-and-Mortar
- Build-to-Rent Development Finance: Funding the Construction Phase
- Build to Rent Finance UK: Forward Funding, Exit and Refinance
- Care Home Development Finance: A Complete UK Guide
- Student Accommodation Development Finance: PBSA Funding Guide
- Brownfield Development Finance: Funding Contaminated and Previously Developed Land
- Class MA and PD Conversion Finance: What Lenders Require
- Permitted Development vs Full Planning: How the Finance Differs
- Permitted Development Market Trends: Office-to-Residential Data
- Development Finance for Conversions: Commercial to Residential Guide
- Modular Construction Finance: Funding Off-Site Building Methods
- Green and Sustainable Development Finance: ESG Lending in the UK
- The UK Housing Crisis and Development Finance: Opportunities for Developers
- Light vs Heavy Refurbishment Finance: Which Do You Need?
- Forward Funding in Property Development: Pre-Selling to Investors
Capital stack
Senior debt, stretched senior, mezzanine, second charge and equity.
- The Capital Stack in Property Development: How to Structure Your Funding
- Stretched Senior Development Finance: Higher LTV Without Mezzanine
- Senior Debt vs Mezzanine Finance: How They Work Together in Your Capital Stack
- Mezzanine vs JV Equity: Cost Worked Example on One Scheme
- Mezzanine vs Equity Funding: Control, Risk and Exit Compared
- Second Charge Development Finance: When You Already Own the Land
- Blended Finance for Development: Combining Multiple Funding Sources
- Intercreditor Agreements Explained: When Senior and Mezzanine Lenders Clash
Legal, tax and process
Facility agreements, contracts, SDLT, VAT, CGT, SPVs and completion.
- Development Finance Facility Agreements: Key Clauses Explained
- Legal Due Diligence in Development Finance: What Solicitors Check
- The Development Finance Completion Process: From Offer to Drawdown
- Building Regulations and Development Finance: Compliance Requirements
- JCT Contracts and Development Finance: Which Contract Suits Your Build
- Contractor Tenders for Development Finance: How Many Quotes Do You Need
- Stamp Duty for Property Developers: SDLT Rules Explained
- Commercial Property Stamp Duty Calculator: Work Out Your SDLT
- VAT on UK Property Development: A Developer's Guide
- Capital Gains Tax for Property Developers: Trade vs Investment
- Development SPV Structure: Tax and Legal Set-Up Explained
- Development Finance SPV: What Lenders Require From the Borrower
- Development Finance Timeline: From Application to First Drawdown
- Development Finance Application Checklist: Documents You Need
- Development Finance Pre-Approval: Getting a Decision in Principle
Build phase and risk
Drawdowns, delays, overruns, covenants, defaults and restructuring.
- Drawdown Schedules in Development Finance: Structuring Cash Flow
- Programme Delays and Development Loans: Managing Lender Expectations
- Cost Overruns and Development Finance: How to Protect Your Facility
- Contractor Insolvency and Development Finance: Protecting Your Scheme
- Breach of Covenant on Development Loans: Common Triggers and Remedies
- LTV Covenant Breaches: When Property Values Fall Below Thresholds
- How to Avoid Defaulting on Development Finance: Early Warning Signs
- What Happens When a Development Loan Defaults? A Step-by-Step Guide
- LPA Receivers in Development Finance: What Developers Need to Know
- Restructuring Development Loans: Negotiating With Your Lender
- Refinancing a Distressed Development: Options When Things Go Wrong
- Market Downturns and Development Finance: Strategies for Survival
- Planning Refusal After Drawdown: Impact on Your Development Facility
- Personal Guarantees in Development Finance: What You're Really Signing
Exit
Planning and financing the exit: sale, refinance or development exit finance.
Financial calculators
Model the numbers
for your scheme.
Development Finance Calculator
Calculate senior debt, equity, interest costs and profit for your development project.
Development Profit Calculator
Estimate gross and net profit, profit on cost and profit per unit for a residential development.
Build Cost Estimator
Estimate total build costs by project type, specification level and region using BCIS benchmarks.
Development Appraisal Calculator
Run a full development appraisal with sensitivity analysis and maximum land bid calculation.
Construction Timeline Estimator
Estimate build duration by project type, scale and construction method with phase-by-phase breakdown.
GDV Calculator
Calculate Gross Development Value using local Land Registry data with unit mix and sensitivity analysis.
Residual Land Value Calculator
Calculate the maximum you should pay for a development site using the residual valuation method.
Side by side
Compare
your options.
Development Finance vs Bridging Loans: Which Do You Need?
Two of the most common short-term property finance products, but they serve fundamentally different purposes. We break down when each is the right choice.
Development Finance vs Commercial Mortgage: Which Do You Need?
One funds construction, the other funds completed assets. Understanding the distinction prevents costly mistakes.
Our services
Related
finance products.
Development Finance
Senior debt funding for ground-up residential and commercial developments.
From 6.5% p.a. · Up to 65-70% LTGDVMezzanine Finance
Stretch your capital stack beyond senior debt to reduce equity requirements.
From 12% p.a. · Up to 85-90% LTGDVDevelopment Exit Finance
Short-term funding to repay development finance while you sell completed units.
From 0.55% p.m. · Up to 75% LTVReady when you are
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