Development Finance

Development Finance Construction Crane

We can source a wide range of funding for Property Developers for ground-up developers and renovators.

Property Types

We can source funding for house builders, commercial property, office to residential conversions, student and care home developments.

Experience not a barrier

We can source funding for experienced and less experienced developers.

Perfect credit not essential

We understand that for many developers, things don’t always go to plan, particularly with Covid. If you have a less than perfect record but a good “story” that we can verify, we can source funders that will “take a view” and provide a pragmatic solution to get you back in action.


All developers need some sort of assets: vans, cars, plant and we can fund all of these. By spreading the cost you can keep the cash flow focused on the build.
Development Finance Workers
Construction Finance, Build Funding, Development Finance
Construction Finance, Build Funding, Development Finance

Structure & borrowing considerations

  • GDV : Most lenders are focussed on loan to Gross Developed Value (GDV) i.e. the end value of the development as confirmed by a valuer. Funding can typically be obtained up to 75% of the GDV or a maximum of 90% loan to the cost of the development. If you have additional property assets, some lenders will take charges over the property in lieu of cash contribution to the deal, or we can help you raise the cash.
  • Repayment : Development finance facilities are interest only loans repaid through unit sales at the end of the build.
  • Amount : Development loans require considerable up front diligence from the lender therefore typically most start at a minimum £500k, but more realistically £1-1.5m. 
  • Term : Loans are rarely longer than 24 months.
  • Fees and rates : Arrangement fees of 1% (High Street banks) to 3% of the facility amount are common, often with a 1% exit fee at the end. Interest rates range from 3% (high street) to 12% plus. Frequently non high street lenders will lend at a rate per month e.g. 0.75% of the borrowed monies. Key drivers of rate are loan to value, experience and loan amount – unusually a larger loan can drive a lower rate.
  • Development appraisal : Lenders will need a run through of the development costings – typically build costs are equating between £160- £220 per square foot and you’ll need to build in a contingency of at least 10%.

Why Funding Friends

Our Funding Friends are experienced bankers (typically 20 years plus) and we have people who have been the bank managers for property developers, so we understand your needs – but now we are working with you to secure the best deal.

We also know the funders that work well in your sector so we can find not only the right lender but also the right contact at that lender to ensure your funding is delivered.

Tell us what you need here.

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