Development finance typically funds up to 100% of build costs and a share of the site, with total lending commonly capped around 55-65% of your scheme’s end value (GDV), released in stages as the build progresses. First-time and experienced developers are both accepted.
Every property development needs the right foundations, and so does your funding.Â
Whether you’re a first-time or more seasoned developer, converting an existing building or starting from the ground up, our team takes the time to structure your loan so it stacks up strongly from the start.Â
We work with lenders that aren’t available to every broker and have access to the most competitive rates on the market. We can even release funds in stages aligned to the build progress, helping you manage your cash flow. We’re clever like that.
When you need development finance, you need more than just the right rate; you need someone who understands build costs, timings and exactly how funding should be released.
That is why we match your project to the right lender and agree on a funding structure that reflects how the build will actually be delivered, ensuring money is available when you need it.
Whether you’re converting an existing property or taking on a ground-up scheme, our team takes the time to understand your future plans and structures the funding so it stacks up, even when the scaffolding comes down.
Typical timing: Straightforward bridging finance cases can be completed in 12-18 weeks. Faster is possible if your circumstances are straightforward and everything is ready up front.
Send us a quick outline including site address, GDV, loan amount, build costs, timescale, exit plan, and we will come back within 24 business hours with a clear plan and the likely structure of your loan.
Once that is approved, we will request a signed Decision in Principle (DIP), from you and instruct the property valuation and set out any conditions in clear terms.
We keep the legal process moving and update you at every stage. If, for whatever reason, a date shifts, you’ll hear it from us first (along with a new date).
Senior facility at ~68% LTGDV; staged draws; all units reserved off-plan; redeemed from sales in 11 months.
Stretch senior at ~72% LTGDV; robust contingency; exit to BTL on completion.
£1.25m facility; IMS-led draws; uplift captured on revaluation; part sell/part hold exit.
(Anonymised; figures indicative.)
Property development involves purchasing a property or site and improving it to increase its value, typically through renovation, conversion, or construction.
This could range from refurbishing an outdated building to converting it into multiple units or developing a property from the ground up.
Property developers usually target properties that are under-utilised or in poor condition, as these present opportunities to add value through works such as structural improvements, modernisation, reconfiguration, or extensions.
Once the development is complete, the property is either sold for profit or refinanced and retained as a long-term investment, generating rental income. The success of a development depends on careful planning, accurate costings, and a clear strategy for how the project will be exited once works are finished.
Development finance is often assessed by the strength of the project, not your personal finances.
Key factors considered by lenders are the:
You don’t always need years of development experience to qualify.
First-time developers can still be considered, particularly where the project is well structured and supported by the right professionals.
The usual fees are a valuation fee, legal fees and a lender application or arrangement fee to cover the costs of setting up the loan.
It is very important that you fully plan your project to avoid unnecessary fees. If you decide to proceed with a property development loan through Clever Lending, we will also charge a fee (which will be discussed on application) and we can help you ensure you have the correct funds in place for the correct time period.
Due to the slight increase in risk with property development finance and the short-term nature, lenders charge slightly higher rates compared to a traditional mortgage.
Property Development finance interest rates are set by considering:
Property development loans are typically repaid in full at the end of the project, once the development has been completed.
If your sale or refinance takes longer than expected, lenders may allow an extension to the development loan, subject to review.
This will usually depend on:
Extensions can involve additional interest or fees, so the key is early communication and realistic planning from the outset. A well-structured development loan allows enough time and contingency to reduce the risk of pressure at the end of the project.
Send us a quick enquiry, and we’ll come back within 24 business hours with a realistic route forward.Â
There are no fees payable until we have found you a solution, and you will always speak to an advisor, not to a triage team passing you on. We believe in speaking to an expert from the start.
Email us directly with your enquiry by clicking here or using our email [email protected].
