Development Finance
Fast, flexible funding for UK property developers
Development finance for new builds, conversions, and refurbishments across the UK. Loans from £25,000 to £50 million, terms up to 18 months, with staged drawdown as your project progresses. Whether you’re an experienced developer with a live pipeline or bringing a first scheme to market, we help you fund every stage — from land purchase to project exit.
What Is Development Finance?
Development finance is short-term funding designed to fund property development projects that traditional mortgages can’t. Unlike a mortgage, funds are released in stages as work progresses — you draw down what you need, when you need it, and interest is charged only on funds drawn.
A single development finance facility can cover:
- Land or property purchase
- Construction and build costs
- Professional fees (architects, planners, surveyors)
- Contingency budget
- Interest and finance costs (rolled up)
We fund:
- Ground-up new builds — residential and mixed-use schemes from single dwellings to multi-unit developments.
- Conversions — houses to flats, commercial to residential, permitted development schemes, and HMO conversions.
- Heavy refurbishment — structural work requiring planning permission or building regulations sign-off.
- Light refurbishment — cosmetic and non-structural works where the property remains habitable.
If your scheme is smaller-scale or shorter-term than a full development facility, a bridging loan or commercial bridging loan may fit better. For fast site acquisitions where planning is already secured, our fast bridging loans can complete in as little as 5 working days.
Development Finance — Terms & Limits
| Feature | Details |
|---|---|
| Loan size | £25,000 – £50,000,000 |
| Loan-to-Value (LTV) | Up to 75% of land or existing property value |
| Loan-to-Cost (LTC) | Up to 100% of build costs |
| Loan-to-GDV (LTGDV) | Up to 70% of Gross Development Value |
| Term | Up to 18 months |
| Developer contribution | Typically 0 – 25% of total scheme cost |
| Interest structure | Rolled up — charged only on funds drawn |
| Drawdowns | Released in stages, verified by an independent monitoring surveyor |
| Exit route | Sale, refinance onto BTL or commercial mortgage, or investor take-out |
- Exact terms depend on scheme type, location, developer experience, and lender appetite. Every enquiry is priced individually. To model interest and total borrowing cost against a specific loan size and term, use our bridging loan calculator.
Types of Development Finance
Ground-Up Development Loans
Funding to acquire a site and construct residential or mixed-use property from scratch. Covers land purchase, build costs, and professional fees. Typically for schemes with planning already granted, though we can consider pre-planning arrangements case-by-case. Where the land is being acquired ahead of a full development facility, a separate land bridging loan can secure the site while planning progresses.
Conversion Finance
Funding for permitted development schemes, house-to-flat conversions, commercial-to-residential change of use, and HMO conversions. Suits developers taking existing stock and creating multiple units for sale or rent.
Heavy Refurbishment Finance
For large-scale renovations requiring structural work, planning consent, or building regulations sign-off. Typical use cases: extensions, loft conversions to habitable rooms, whole-house rip-outs, or bringing derelict property back into use.
Light Refurbishment Finance
Cosmetic and non-structural improvements — kitchens, bathrooms, rewiring, redecoration. Faster to arrange than heavy refurb, often structured as a short bridging facility with a refurb tranche.
Joint Venture & Equity Participation
For established developers who want to partner rather than borrow. We arrange facilities where the lender takes an equity stake in the scheme alongside the developer, splitting risk and return.
How Our Development Finance Process Works
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- Initial enquiry. You share the scheme — site, planning status, cost plan, GDV, exit strategy, developer track record. Takes 10 minutes on a call.
- Decision in Principle (DIP). We match you to the right lender and secure indicative terms — often the same day.
- Full underwriting. You submit planning documents, cost breakdown, developer CV, and any professional reports. The lender’s surveyor visits site.
- Legal completion. Solicitors on both sides complete drawdown documents. Facility goes live.
- Staged drawdown. Funds released as milestones complete, verified by an independent monitoring surveyor.
- Project exit. Loan repaid via sale of units, refinance onto BTL or commercial term finance, or investor take-out. Where a short additional bridging loan is needed to complete the exit — for example, to sell final units while the main facility unwinds — we can arrange it alongside.
Time to funds: Indicative offers often available the same day. Full completion typically 2 to 4 weeks on straightforward schemes; longer where planning or title complications exist.
Why developers choose Bridging Finance 4U
- Whole-of-market access. We’re brokers, not lenders — we place your scheme with the right funder from our panel of bridging and development lenders rather than the only one we have.
- Speed. Indicative decisions often the same day. Most cases complete in 2 to 4 weeks.
- Straight talk on rates and fees. No surprises at completion. What you’re quoted is what you sign.
- Support through the full lifecycle. From DIP through drawdown to exit — we stay in the conversation.
- First-time developers welcome. Every scheme is assessed on merit. If it stacks up, we’ll find a lender who agrees.
Regional coverage: We fund schemes UK-wide. Regional detail is available for London, the Midlands, Scotland, and Northern Ireland.
Example Scheme Structures
The following show how development finance is typically structured on schemes of this kind. They are illustrative examples rather than records of specific transactions.
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Example 1: 4-bed house to 6 flats, Hackney
- Loan: £850,000
- Type: Conversion and refurbishment
- Term: 12 months
- Structure: Funding released in four stages against a monitoring surveyor's reports, with the exit on completion being a refinance onto a buy-to-let facility.
-
Example 2: HMO light refurbishment, Croydon
- Loan: £250,000
- Type: Light refurbishment
- Term: 9 months
- Structure: Interest rolled up over the term, with the exit being a sale at the projected gross development value.
-
Every scheme is structured differently. Contact us to talk through how finance would work on yours.
Development Finance - FAQ
What documents do I need to apply?
Planning permission, or pre-application correspondence if you are pre-planning, a cost plan or QS report, property or site plans, a developer CV showing prior schemes where applicable, and identity and company documents. For larger schemes we also need a full appraisal showing gross development value, costs and exit route.
What is a Decision in Principle?
An early-stage assessment where we confirm your scheme is fundable and give you indicative terms — loan size, rate range, loan to cost and loan to gross development value — so you can proceed to full application knowing where you stand.
How does staged drawdown work?
Funds are released against completed work, verified by an independent monitoring surveyor appointed by the lender. Interest is charged only on the amount drawn, not on the full facility, which keeps borrowing costs down through the early months of a scheme.
Do I need previous development experience?
It helps, but it is not essential. First-time developers can be funded where the scheme is well scoped, a professional team is in place and the exit route is credible. We will tell you honestly if a case is a stretch.
What are the typical rates and fees?
Rates vary by scheme and lender appetite. The arrangement fee is 2% of the facility. Legal costs apply on both sides, and an exit fee of 0% to 1% of the gross loan may apply depending on the lender. Full costs are set out at decision in principle stage. For current pricing see our bridging loan interest rates page.
How long does approval take?
A decision in principle can usually be issued the same day. A full facility is typically live within two to four weeks for clean schemes. Complex or first-time cases take longer, and we will tell you upfront where yours is likely to sit.
What is my exit route?
The three common exits are sale of the completed units, refinance onto a buy-to-let or commercial term facility, or an investor buyout. We build the exit into the decision in principle, because the lender needs to see a credible route out before advancing anything.
Talk to a Broker
Free, no-obligation quote. Same-day response.
Send us a note about your scheme — location, size, stage — and we’ll come back the same day with an indicative view. If it fits, we’ll issue a DIP the same day. Prefer to talk? Contact us directly or call 020 3328 0745.
