Development Finance | Property Development Loans

Development Finance | Property Development Loans

Development Finance UK

Development finance funds the construction, conversion, and refurbishment of property across the UK and internationally. Unlike a standard mortgage that lends against an existing property, development finance is structured around the project — the land value, the build costs, and the completed value of the finished scheme. Funds are released in staged drawdowns as the build progresses, meaning you only pay interest on capital that has been drawn, keeping costs controlled throughout the construction programme.

Platinum Global Bridging Finance arranges development finance from £500,000 to £150 million + for residential, commercial, and mixed-use projects. We access specialist development lenders, private debt funds, family offices, and challenger banks through our panel of 100+ lenders — matching every project to the most competitive funding structure available. Indicative terms are delivered within 24 hours from our offices in London (64 Knightsbridge, SW1X 7JF) and Manchester (Railway House, Urmston). No broker fee on facilities of £500,000 or above.

How Development Finance Works

Development finance is a short-term facility — typically 12 to 24 months — secured against the development site. The lender advances funds in two components: the land loan (up to 70% of the site purchase price or current value) released at drawdown, and the build facility (up to 100% of the construction costs) released in staged tranches against surveyor-certified progress. The lender instructs a monitoring surveyor who visits the site at each drawdown stage, confirms the works are progressing in line with the agreed build programme, and certifies the next tranche for release.

The total facility is typically capped at 65-70% of the Gross Development Value (GDV) — the estimated value of the completed scheme. This GDV cap ensures the lender has a comfortable equity cushion if the project underperforms. Interest is usually rolled up (added to the loan balance) rather than serviced monthly, meaning you make no payments during the build — the full balance is repaid when the completed units are sold or the scheme is refinanced.

Types of Development Finance We Arrange

Ground-Up Development Finance

Funding for new-build residential and commercial projects — from single houses to large-scale apartment schemes. The facility covers land acquisition and the full construction programme, with staged drawdowns against build milestones. We arrange ground-up development finance for experienced developers and first-time developers with strong professional teams across the UK.

Refurbishment Development Finance

Funding for heavy refurbishment projects that go beyond the scope of a standard refurbishment bridging loan — structural alterations, extensions, change of use, and comprehensive modernisation programmes. Refurbishment development finance provides staged drawdowns against the works programme, with the exit being a sale or refinance at the improved value.

Permitted Development Finance

Specialist funding for commercial-to-residential conversions under Class MA permitted development rights. The facility covers the acquisition of the commercial building and the conversion works, with prior approval obtained during the loan term. Permitted development finance is particularly active in London boroughs like Lewisham, Croydon, Woolwich, Ealing, and Acton where residential values significantly exceed commercial values.

Development Exit Finance

Short-term facilities that replace the development loan once the build is complete but before all units have sold. Development exit finance is cheaper than development finance (because the construction risk has been removed) and gives the developer time to sell remaining units at full market value rather than accepting discounted prices to meet the development loan maturity date.

Mezzanine Development Finance

Additional funding that sits between the senior development loan and the developer’s equity — filling the gap when the senior lender’s facility doesn’t cover the full capital requirement. Mezzanine finance typically funds the difference between the senior loan (65-70% GDV) and the total capital needed, reducing the developer’s cash equity requirement. Rates are higher than senior debt but the leverage enables projects that would otherwise be unaffordable.

100% Development Finance

Structures that eliminate or minimise the developer’s cash equity contribution — combining senior debt, mezzanine funding, and in some cases profit-share arrangements to fund the entire project cost. Our 100% development finance page explains the structures available, the costs involved, and which projects qualify.

Residential Development Finance

Residential development finance for new-build houses, apartment schemes, bungalows, and residential conversions. The UK’s housing shortage continues to drive demand for new residential development, and specialist lenders are actively competing for well-structured residential schemes with strong GDV evidence and experienced development teams.

Commercial Development Finance

Commercial development finance for office buildings, retail units, industrial and warehouse facilities, hotels, care homes, and mixed-use schemes. Commercial development lending is assessed primarily on the end-use, pre-let status, and the strength of the development team’s track record in the relevant sector.

First-Time Developer Finance

You do not need a track record to secure development finance — but you do need a credible project and a strong professional team. Many lenders accept first-time developers provided the scheme is supported by an experienced contractor, a realistic development appraisal, and appropriate planning consents. We have extensive experience structuring facilities for developers entering the market for the first time.

Development Finance in London

London is the UK’s most active development market — from large-scale residential schemes in Stratford, Barking, and Woolwich to boutique conversions in Hampstead, Islington, and Bermondsey. We arrange development finance across London for ground-up builds, office-to-residential PD conversions, basement excavations, HMO conversions, and comprehensive refurbishment projects. Our London-specific knowledge — built through years of arranging bridging loans across 90 London areas — means we understand the micro-markets, planning environments, and valuation dynamics that affect every London development project.

European Development Finance

We arrange development finance for projects across Europe, with specialist knowledge of the Spanish, French, and German markets. Our European development finance offering covers residential resort developments, urban apartment schemes, commercial projects, and mixed-use developments across the EU.

• Development Finance Spain — residential and resort developments across the Spanish market
• Development Finance France — residential and commercial development funding in France
• Development Finance Germany — property development loans for the German market

What We Arrange

• Facilities from £500,000 to £150 million +
• Up to 70% of site value (land loan)
• Up to 100% of build costs
• Total facility up to 65-70% of GDV
• Terms from 12 to 24 months
• Interest rolled up — no monthly payments during construction
• Staged drawdowns against surveyor-certified progress
• Available to experienced developers, first-time developers, limited companies, and SPVs
• Residential, commercial, mixed-use, and specialist sectors
• No broker fee on facilities of £500,000 or above
• Indicative terms within 24 hours

The Development Finance Process

Step 1: Initial Appraisal

We review your development appraisal — the site cost, build costs, professional fees, contingency, finance costs, and projected GDV. This determines the funding requirement and the likely terms. If you do not yet have a formal appraisal, we can help you structure one.

Step 2: Lender Matching

We match your project to the most appropriate lenders from our panel — considering the project type, location, size, your experience level, and the LTV/GDV required. We typically present 2-3 competitive options with full cost comparisons.

Step 3: Valuation and Due Diligence

The lender instructs an RICS-accredited valuer to assess the current site value and the projected GDV. The valuer also reviews the development appraisal, build costs, and programme. Legal due diligence runs in parallel — title checks, planning verification, and AML compliance.

Step 4: Formal Offer and Drawdown

The lender issues a formal facility offer. Once legal conditions are satisfied, the initial drawdown (land loan) is released. Subsequent drawdowns are released against the monitoring surveyor’s stage certifications as the build progresses.

Step 5: Completion and Exit

When the build reaches practical completion, the exit strategy is executed — typically the sale of completed units, a refinance onto long-term investment finance, or a development exit bridge to allow sales at market pace.

Development Finance Costs

Development finance is priced according to the project’s risk profile. Typical costs include interest rates of 5-9% per annum (drawn balance only — you do not pay interest on undrawn funds), an arrangement fee of 1-2% of the total facility, a monitoring surveyor fee of £500-£1,500 per site visit (typically 4-8 visits during a build), valuation fees of £2,000-£5,000 depending on the scheme size, and legal fees of £3,000-£10,000+ depending on complexity. The total finance cost on a typical residential development is 8-12% of the total facility — a project expense that is factored into the development appraisal from the outset.

Frequently Asked Questions

Can first-time developers get development finance?

Yes. Many lenders accept first-time developers provided the project is supported by an experienced main contractor, a realistic development appraisal, and appropriate planning consents. Terms may be slightly more conservative (lower GDV percentage, requirement for a larger equity contribution) but funding is available. See our first-time developer finance page for details.

What is Gross Development Value (GDV)?

GDV is the total market value of the completed development — the sum of all the individual units at their projected sale prices. Lenders use GDV to calculate the maximum facility — typically 65-70% of GDV. A scheme with a GDV of £5 million would support a total facility of £3.25-£3.5 million.

How are funds released?

In staged drawdowns. The land loan is released at completion of the site purchase. Build costs are released in tranches — typically 4-8 stages — against the monitoring surveyor’s certification that the works have reached the agreed milestone. Common milestones include foundations complete, superstructure (walls and roof), first fix (plumbing, electrics, plastering), second fix (kitchens, bathrooms, finishes), and practical completion.

What planning consent do I need?

Most lenders require full planning permission or prior approval (for permitted development conversions) to be in place before they will fund. Some lenders will fund subject to planning — advancing the land loan before planning is granted — but at higher rates and lower LTV. Pre-planning bridging can fund the site acquisition while planning permission is obtained.

Can I use development finance for a single house?

Yes. Single-unit development finance is available for self-builds, knock-down-and-rebuild projects, and single house developments. Minimum facility sizes vary by lender — some start at £250,000, others at £500,000.

What is the difference between development finance and a bridging loan?

A bridging loan is a single advance secured against an existing property. Development finance provides staged drawdowns against a construction programme, allowing the developer to fund both the land acquisition and the build costs through a single structured facility. For light refurbishment projects (cosmetic works, no structural changes), a bridging loan is usually more appropriate. For heavy refurbishment, conversions, and ground-up builds, development finance provides the structured drawdown facility that the project requires.

Does Platinum Global charge a fee?

No broker fee on facilities of £500,000 or above.

Our Specialist Development Finance Pages

For detailed information on specific types of development finance, see our dedicated pages:

Ground-Up Development Finance · Refurbishment Development Finance · Permitted Development Finance · Development Exit Finance · Mezzanine Development Finance · 100% Development Finance · Residential Development Finance · Commercial Development Finance · First-Time Developer Finance · Development Finance London

Get a Development Finance Quote

Platinum Global Bridging Finance arranges development finance for projects across the UK and Europe. Whether you are building a single house, converting offices under permitted development, or delivering a 50-unit residential scheme, we structure the funding to match your project’s requirements and timeline. Contact us at 64 Knightsbridge, London or Railway House, Manchester for indicative terms within 24 hours.