Full Transparency
What development finance
actually costs
We put every fee in writing before you commit. Here's every cost you'll encounter, explained in plain English.
Our Fees
What we charge
Simple and transparent. Our fee is generally 1% of the gross loan, due on completion. An application fee is possible on complex deals, agreed in writing first.
Our Fee
Generally 1%
of the gross loan, due on completion
Our fee is generally 1% of the gross loan, due on completion. An application fee is possible on complex deals, agreed with you in writing first. We put every fee in writing before you commit.
Application fee
Only on complex deals
agreed in writing first
An application fee is possible on complex deals. We agree it with you in writing first. There is no separate charge for preparing the pack.
Lender Costs
What the lender charges
These are the typical costs charged by development finance lenders. Ranges vary by lender, deal size and risk profile.
| Cost | Typical Range | When Payable |
|---|---|---|
| Interest Rate | Senior: typically around 7.5% a year (average, Oct 2026) | Monthly / rolled up |
| Arrangement Fee | 1% — 2% | Completion |
| Exit Fee | 0% — 1.5% | Redemption |
| Valuation Fee | £3k — £15k+ | Upfront |
| Monitoring Surveyor | £500 — £2,000, depending on the size of the scheme | Per drawdown |
| Legal Fees (Lender) | £5k — £25k+ | Completion |
| Legal Fees (Yours) | £5k — £25k+ | Completion |
Why are development legal fees higher than on a standard loan? Alongside the facility itself, the solicitors deal with build contracts and JCTs, novations, step-in rights and project manager appointments. That extra paperwork is what drives the cost.
Worked Example
What it looks like in practice
A typical 6-unit residential scheme to illustrate the full cost picture.
Example: 6-Unit Residential Scheme
Land £400k | Build £600k | Professional fees & other costs £100k | Total costs £1.1m | GDV £1.5m | 18-month term
That's approximately 6.3% of GDV or 8.6% of total costs. This is an illustrative example only: rates, fees and drawdown profile vary by lender and deal.
Watch Out For
Hidden costs to look out for
Minimum Interest Periods
Some lenders charge a minimum of 6–12 months interest even if you repay early. Always check the minimum term.
Non-Utilisation Fees
Some lenders charge a fee on undrawn funds. This can add up — especially on large facilities with slow drawdown schedules.
Extension Fees
If your project overruns, extending the loan can cost 1–2% plus increased interest. Factor contingency time into your build programme.
Default Interest
If you breach covenants or miss drawdown conditions, default interest can be 3–5% above standard rates. Know your facility agreement.
Broker Upfront Fees
Ask any broker whether an upfront fee applies, what it covers and when it is due.
Dual Representation
Some lenders use the same solicitor for both sides. This can save money — but make sure your interests are properly represented.
Want a real number for your project?
Use our calculator for a quick estimate, or talk to us for a detailed appraisal with real lender terms.