Development Finance Timeline: From Application to First Drawdown

The typical development finance timeline from initial enquiry to first drawdown is four to eight weeks for experienced developers with straightforward schemes and six to twelve weeks for first-time developers or complex projects. These timeframes assume a well-prepared application with all documentation available upfront. In reality, we see significant variation depending on the completeness of the application, the complexity of the scheme, the responsiveness of the borrower and their professional team, and the internal processes of the chosen lender.

Understanding each stage of the timeline allows you to plan your project schedule accordingly, manage cash flow commitments, and identify potential bottlenecks before they cause delays. Too many developers assume they can apply for finance and receive funds within days, leading to frustration and, in some cases, failed transactions where exchange deadlines are missed. By contrast, developers who understand the process and prepare for each stage in advance consistently achieve faster completions and better terms.

The timeline can be broken into six distinct stages: initial enquiry and broker engagement, application submission and lender selection, valuation and due diligence, credit committee approval, legal completion, and first drawdown. Each stage has its own requirements, potential delays, and opportunities for acceleration. We have mapped out each stage below with realistic timeframes based on our experience of arranging over five hundred development finance facilities across the UK in the past three years.

The first stage begins when you approach a broker or lender with your development opportunity. At this point, the broker needs enough information to assess the deal, identify suitable lenders, and provide indicative terms. The essential information includes the site location and description, planning status, proposed scheme details including unit numbers and sizes, estimated GDV, estimated build costs, your development experience, and the amount of equity you have available. A good broker can provide initial feedback and indicative terms within 24 to 48 hours of receiving this information.

During this stage, we assess the deal against the criteria of multiple lenders to identify the best fit. For a typical residential development scheme with a GDV of £2,000,000 to £5,000,000 and a facility requirement of £1,300,000 to £3,250,000, we would typically consider ten to fifteen lenders before shortlisting two or three that offer the best combination of terms, leverage, and speed. The shortlisting process takes into account not just the headline interest rate, but also the arrangement fee, monitoring surveyor costs, exit fees, prepayment penalties, and the lender’s reputation for reliable execution.

This stage should take no more than three to five working days from initial contact to having a clear recommendation on lender selection and indicative terms. If your broker takes longer than a week to come back with initial feedback, it may indicate that the deal is problematic, the broker is overloaded, or they do not have sufficiently broad lender relationships. Speed at this stage sets the tone for the rest of the process, and in our experience, the deals that complete fastest are those where the initial engagement is decisive and well-informed.

Once you have agreed on a lender, the formal application is submitted. This is where the quality of your preparation pays dividends. A complete application pack, as detailed in our application checklist guide, should include the development appraisal, contractor tenders, planning documents, personal and corporate financial information, proof of equity, and details of your professional team. Submitting all of this in a single, well-organised package saves days compared to a piecemeal approach where documents are provided over several weeks.

The lender’s credit team will review the application and may come back with questions or requests for additional information. This is normal and should not be a cause for concern. Common questions relate to the basis of GDV assumptions, the detail behind build cost estimates, the developer’s experience on comparable schemes, and the proposed exit strategy. Responding to these queries promptly, ideally within 24 hours, keeps the application moving. In our experience, the average application generates three to five information requests from the lender, and each request that takes more than two days to resolve adds a week to the overall timeline.

This stage typically takes five to ten working days from submission to a position where the lender is comfortable to proceed to valuation. The main variable is the responsiveness of the information exchange. If you have prepared thoroughly and can respond to queries quickly, the lower end of this range is achievable. If documents are missing, inconsistent, or take time to locate, you will be at the longer end. We act as an intermediary during this stage, managing the flow of information between borrower and lender and ensuring that queries are resolved quickly and completely.

Once the lender is satisfied with the initial application, they will instruct an independent RICS-registered valuer to assess the site and the proposed scheme. The valuation covers the current market value of the site, the gross development value of the completed scheme, and the estimated build costs from the valuer’s perspective. This is a critical stage because the valuation directly determines the maximum loan amount. If the valuer’s GDV is lower than the developer’s assumption, the loan amount may need to be reduced or additional equity contributed.

The valuation typically takes seven to fourteen working days from instruction to receipt of the completed report. The main variables are the valuer’s availability, the complexity of the scheme, and whether the valuer needs to request additional information such as comparable evidence or planning documents. For straightforward residential schemes in well-established markets, valuations tend to be completed at the faster end of this range. For unusual property types, locations with limited comparable evidence, or mixed-use schemes, the process takes longer because the valuer needs more time to research the market and justify their opinions of value.

Concurrently with the valuation, the lender may instruct other due diligence processes. These can include a monitoring surveyor inspection to assess the feasibility of the build programme and cost plan, a search on the borrower through Companies House and credit reference agencies, and title checks on the property through the lender’s solicitors. Running these processes in parallel with the valuation rather than sequentially is key to maintaining momentum. We coordinate closely with the lender to ensure all due diligence workstreams are initiated simultaneously.

With the valuation and due diligence complete, the deal is presented to the lender’s credit committee for formal approval. The timing of credit committee meetings varies by lender. Some lenders have daily or twice-weekly credit committee meetings, while others meet weekly. A few large institutions have monthly credit cycles, which can add significant time to the process. We factor credit committee timing into our lender selection, avoiding lenders with infrequent credit meetings when the borrower has tight deadlines.

The credit committee reviews the entire application, including the valuation report, and makes a decision to approve, decline, or approve with conditions. Common conditions include requirements to satisfy specific planning conditions before first drawdown, achieve a minimum level of pre-sales before drawing construction funds, provide additional security such as a charge over another property, or complete specific insurance arrangements. These conditions must be met before the facility can be drawn, so understanding them early allows you to begin working on them immediately.

From credit committee approval to issuance of the formal facility letter typically takes two to five working days. The facility letter sets out all the terms of the loan, including the interest rate, fees, drawdown conditions, monitoring surveyor arrangements, and repayment terms. Review the facility letter carefully and raise any concerns immediately. Once you accept the facility letter, the deal moves into the legal phase. The credit committee stage overall, from submission to formal offer, typically takes five to ten working days. Delays at this stage are usually caused by the credit committee requesting additional information or imposing conditions that require further documentation.

The legal phase involves the lender’s solicitors and your solicitors completing the legal documentation and satisfying themselves that the security is in order. This includes drafting and negotiating the facility agreement, completing title investigations and property searches, registering the lender’s charge against the property, confirming insurance arrangements, and satisfying any conditions precedent specified in the facility letter. The legal phase is often the longest stage in the process, typically taking ten to twenty working days.

The main causes of delay during the legal phase are title issues, such as missing or defective title documents, unregistered land, or existing charges that need to be removed; slow responses from third-party solicitors, such as the vendor’s solicitor on a purchase; and the time taken to satisfy conditions precedent, particularly those relating to planning conditions, contractor appointments, or insurance. We recommend instructing your solicitor as soon as you receive the indicative terms, even before the formal offer is issued, so they can begin preliminary work and identify any title issues early.

To speed up the legal phase, ensure your solicitor has experience of development finance transactions. A solicitor who regularly acts on property development deals will know what the lender’s solicitors expect and can pre-empt common questions. Provide all requested documents promptly, respond to queries within 24 hours, and chase third parties such as the vendor’s solicitor or your insurance broker if they are causing delays. We maintain regular contact with both sets of solicitors during this phase, applying pressure where necessary to keep the transaction moving toward drawdown.

Once legal completion has occurred, you can request the first drawdown. The first draw typically covers the land acquisition cost, plus any initial professional fees and preliminary works. Before releasing funds, the lender will confirm that all conditions precedent have been satisfied, the monitoring surveyor has completed their initial assessment, and insurance is in place. This confirmation process takes one to three working days from the drawdown request.

Subsequent drawdowns follow a regular pattern through the construction phase. You submit a drawdown request to the lender, the monitoring surveyor visits the site to verify that works corresponding to the requested amount have been completed, the surveyor issues their report to the lender, and the lender releases the funds. This cycle typically takes five to ten working days per drawdown. Planning your cash flow to accommodate this cycle is essential, as contractors will expect to be paid before the drawdown funds are received. Most developers maintain a working capital buffer of one to two months of build costs to bridge the gap between expenditure and drawdown receipts.

The total timeline from initial enquiry to first drawdown for a well-managed application with a straightforward scheme is typically four to six weeks. For complex schemes, first-time developers, or transactions with legal complications, six to twelve weeks is more realistic. The single most effective way to reduce your timeline is to submit a complete, well-prepared application from the outset. Every document request, every unanswered query, and every missing piece of information adds days to the process. Use our deal room to submit your application and track progress through each stage.