Core Product
Development Finance
structured to perform
30+ years · 110+ specialist lenders · £68.6m largest facility
Bespoke fully funded structures for individuals to corporate developers requiring fast, efficient and competitive finance to deliver real estate developments. In addition to senior debt, we can provide further capital where needed including equity and mezzanine.
£250k — £100m+
Loan Size
6 — 36 months
Typical Term
Up to 70% LTV / 90% LTC
Typical LTV
Key Features
What We Offer
Phased Drawdowns
Funding released in stages as construction progresses, monitored by an independent quantity surveyor. You only pay interest on drawn funds.
Interest Rolled Up
No monthly payments during the build phase. All interest is rolled up and repaid at exit — keeping your cashflow free for the project.
Senior + Mezzanine + Equity
We structure the complete capital stack. Senior debt, mezzanine and equity assembled as one package to maximise your return.
Compelling Lender Presentation
We produce detailed development appraisals and cashflows — presenting your project in the best possible light to our funding partners.
Speed of Execution
Direct relationships with decision-makers across 110+ specialist lenders. Terms within days, completions in weeks.
Flexible Structures
Every project is different. We structure funding bespoke to your scheme — not a one-size-fits-all product.
Ideal For
Common Scenarios
New Build Housing
From single plots to large estates. Residential C3 housing schemes with phased drawdowns and staged sales.
Apartment Schemes
Purpose-built apartment blocks including build-to-sell and build-to-rent. City centre and suburban.
Conversion Projects
Office-to-residential, commercial-to-residential, barn conversions. Permitted development and full planning.
Mixed-Use Developments
Schemes combining residential, commercial and retail elements. Complex structures made simple.
Extra Care / Assisted Living
Specialist C2 developments including retirement villages and extra care schemes. We understand the sector.
PBSA & Towers
Purpose-built student accommodation and high-rise developments. Institutional-grade funding for larger schemes.
Our Approach
Understanding your project as well as you do
We are highly skilled in producing detailed development appraisals and cashflows to provide not only the most efficient and safest structure but also ensuring a complete and compelling presentation to our funding partners.
We will promote the scheme's positives and de-risk the scheme's weaknesses. Your project is presented professionally — maximising your chances of competitive terms.
Read our guide to development finance rates in 2026
How institutional debt funds are reshaping the £20–75m living-sector bracket
Homes Funded
Largest Facility
Smallest Facility
Specialist Lenders
Development Finance FAQ
Common questions
What is property development finance?
Property development finance is a specialist short-term loan that funds the construction, conversion or substantial refurbishment of property. It differs from a mortgage: money is released in stages as construction progresses (typically against monitoring-surveyor sign-off), interest is rolled up rather than paid monthly, and the loan is repaid when the completed units sell or refinance onto term debt. Facilities typically run 6-36 months and combine senior debt, mezzanine and developer equity. Property development finance is unregulated commercial lending, distinct from the residential mortgage market.
How much deposit do you need for development finance?
Most development finance lenders require the developer to contribute 25-40% of total project costs as equity. With senior debt alone, the developer typically funds the gap between the lender's loan-to-cost (often 60-70%) and total scheme cost. Adding mezzanine finance brings the developer's equity requirement down to 10-15% of cost — useful for developers wanting to scale across multiple sites rather than concentrate capital in one. The exact deposit depends on scheme strength, sponsor track record, GDV concentration and exit route. We model the equity requirement against different stack structures in every initial appraisal.
How do you finance property development?
Property development is typically financed using a layered capital stack: senior development debt (usually 55-70% of total project costs) is the foundation; mezzanine finance (a second-charge loan) sits behind senior debt to reduce the developer's equity requirement; and the developer contributes the remaining equity (often 10-25% of costs once mezzanine is in place). For larger schemes, forward funding or forward commitment from an institutional buyer can replace some or all of the developer equity — the buyer purchases the completed scheme (or commits to do so) before construction begins. We model the optimal structure for each scheme based on size, sponsor track record, exit route and capital intensity, and arrange the full stack across our lender panel.
How do you get funding to be a property developer?
Three things matter most when securing development finance as a developer: (1) a viable scheme — sensible land cost, credible build cost plan, defendable GDV with comparable evidence, and a profit margin of 18-20%+ on cost; (2) a credible team — experienced QS, architect, contractor and (for first-time developers especially) a strong professional cast around you; (3) skin in the game — developer equity contribution of at least 10-15% (with mezzanine) or 25-40% (senior debt only). First-time developers are not excluded but typically pay a small pricing premium and need the scheme economics and professional team to be stronger. We produce the development appraisal and cashflow, present the project to the lender panel, and structure the right stack — that's most of the work in getting funded.
Can you get a loan for property development?
Yes — development finance is a specialist loan designed specifically for property development. Unlike a mortgage, it funds construction or conversion in stages as the build progresses, with interest typically rolled up and the loan repaid when the completed units sell or refinance. Lenders fund both ground-up new builds and conversions or heavy refurbishments. The key requirements are a viable scheme (credible costs, defendable GDV, sensible margin), an appropriate developer equity contribution (typically 25-40% on senior debt alone, or 10-15% with mezzanine), and a clear exit. First-time developers can get a development loan but usually need a stronger scheme and professional team to compensate for the lack of track record.
What are the 5 C's in finance?
The "5 C's" are the five factors lenders weigh when underwriting a loan: Character (the borrower's track record and credibility), Capacity (ability to deliver and repay), Capital (the equity the borrower is contributing), Collateral (the security — for development finance, the site and the completed scheme), and Conditions (the wider market and scheme-specific circumstances). In development finance specifically, lenders translate these into: developer experience and team strength (Character/Capacity), equity contribution and skin in the game (Capital), the site and its GDV (Collateral), and the exit route plus market conditions (Conditions). A strong scheme answers all five convincingly — which is most of what a good appraisal and lender presentation sets out to do.
What should I consider before becoming a property developer?
Six practical realities to think through before committing capital to a first scheme: (1) Capital — most schemes need 25-40% developer equity on senior debt alone, or 10-15% once mezzanine is in play; that capital is locked up from acquisition to sell-out, typically 18-36 months. (2) Time to first cashflow — there is none during the build. Developer profit lands at exit (sale or refinance), not month-by-month. (3) Planning risk — a site without consent can stall indefinitely; even with consent, conditions and discharge add months. (4) Market risk — GDV at exit may differ materially from the GDV that underwrote the appraisal. (5) Operator vs investor mindset — developers run the project (cost discipline, contractor management, programme); investors hold finished assets. They are different jobs requiring different skill sets. (6) Finance fit — developing.fund supports active developers raising scheme finance; the conversation works best when you have a specific site, an outline or detailed plan, and a credible cost base. This is not investment advice. For guidance on whether property development is right for your personal financial circumstances, speak to a regulated independent financial adviser (IFA). developing.fund is a commercial finance broker (Funding Developers Ltd, Co. 09221311) supporting active developers with scheme finance.
How does development finance work in the UK?
In the UK, development finance is a short-term, staged facility for building or converting property. It works in a defined sequence: the lender agrees a total facility against the scheme's costs and gross development value (GDV); the land cost is usually drawn on day one; construction funds are then released in tranches as the build progresses, each signed off by a monitoring surveyor; interest is typically rolled up (added to the loan) rather than paid monthly; and the whole facility is repaid at the end when the completed units are sold or refinanced onto term debt. Senior debt usually covers 60-70% of cost, with mezzanine and developer equity filling the rest. It is unregulated commercial lending — distinct from the regulated residential mortgage market — and pricing and leverage flex with scheme size, sponsor track record, planning status and exit route.
How to get funding to be a property developer?
To get funding to be a property developer, three things need to be in place: a viable scheme (credible land cost, defensible GDV backed by comparables, realistic build cost plan, and 18–20%+ profit on cost); a credible professional team (QS, architect, experienced contractor — especially important if you are developing for the first time); and developer equity of at least 10–15% of total costs once mezzanine is in play, or 25–40% on senior debt alone. Lenders fund first-time developers regularly — it is not a bar, but the scheme economics and team need to be stronger to offset the absence of a track record. The practical starting point is a development appraisal that presents the numbers compellingly and a lender presentation that pre-empts the questions underwriters will ask. We produce both and approach the right lenders on your behalf — that is most of the work in getting funded.
How to finance a property development?
Property development is typically financed through a layered capital stack built around the scheme's costs and GDV. Senior development debt — usually 55–70% of total project costs — forms the base, drawn in staged tranches as construction progresses and repaid when completed units sell or refinance. Mezzanine finance (a second-charge loan behind senior debt) reduces your equity requirement from 25–40% of costs down to 10–15%. For larger or institutional-grade schemes, forward funding from an investor can replace developer equity entirely — the buyer commits to purchase the completed scheme before construction begins. The right structure depends on scheme size, your track record, and your exit route. We model the optimal stack for every enquiry: senior debt, mezzanine, and equity or forward funding as a single coordinated package. We also produce the development appraisal and cashflow that lenders require — that document is what unlocks the finance.
What is an example of development finance?
A typical example: a developer acquires a brownfield site with planning for 20 residential apartments. Total project costs are £4m (£1.2m land, £2.2m build costs, £600k fees and finance). GDV — the combined value of the 20 completed apartments — is £6m. A senior development lender provides 65% LTGDV: £3.9m. A mezzanine lender tops up to 88% of cost: a further £520k. The developer contributes the remaining £480k (12% of costs) as equity. At day one, £1.2m is drawn to complete the land purchase. Construction funds — the £2.2m build element — are released monthly as the monitoring surveyor signs off progress on site. Interest on all drawn amounts rolls up throughout the build. On sell-out, the £6m sales revenue repays senior debt, mezzanine, all rolled-up interest and fees, and leaves the developer with profit. developing.fund structures and arranges both layers — the full appraisal, lender presentation, and capital stack — as a single package.
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Get a development appraisal or arrange a call with a specialist.