Property Development Finance UK: Complete Developer Guide
Welcome to our specialist guide on development finance uk in the UK. Property development finance provides structured short-term capital to fund land acquisition and construction works. Specifically, access whole-of-market funding up to 70% GDV and 90% Loan-to-Cost. In addition, staged drawdowns support new builds, conversions, and commercial schemes.
Property Development Finance: Explore the 5 Development Finance Knowledge Pillars
Navigating development capital requires specialist knowledge. Therefore, our lending desk structured the top 25 borrowing questions into five dedicated pillars:
1. Basics
First, understand core development funding mechanics. Specifically, evaluate GDV and LTC calculations, qualifying conversions, and FCA regulatory criteria.
Explore Basics Guide →2. Speed & Process
Next, follow our step-by-step development process. In addition, compile appraisal packs, navigate credit committees, and manage surveyor drawdowns.
Explore Process Guide →3. Rates & Costs
Furthermore, review complete pricing transparency. Crucially, calculate interest margins, rolled-up interest mechanics, professional fees, and exit fee structures.
Explore Rates Guide →4. Strategy
In addition, explore strategic funding frameworks. Consequently, finance HMO conversions, stack senior and mezzanine debt, and leverage Permitted Development rights.
Explore Strategy Guide →5. Hacks
Finally, discover insider developer tactics. In practice, fund first-time projects, secure 100% cross-collateralised loans, and execute exit bridge refinancing.
Explore Hacks Guide →Development Finance vs Bridging Finance Comparison
| Feature | Property Development Finance | Bridging Finance |
|---|---|---|
| Core Purpose | Ground-up construction & heavy structural conversion | Property acquisition, light refurbishment & fast chain-break |
| Funds Release | Staged monthly drawdowns in arrears via IMS survey | Single lump-sum release on day of legal completion |
| Maximum Gearing | Up to 70% GDV & 85–90% Loan-to-Cost (LTC) | Typically up to 75% of current open market value (OMV) |
| Interest Servicing | Rolled-up into facility; interest charged on drawn funds | Rolled-up, retained, or serviced monthly across full facility |
| Surveyor Monitoring | Mandatory Independent Monitoring Surveyor (IMS) | Initial valuation only (no ongoing site monitoring required) |
Need Specialist Development Finance?
Specifically, Simon Carr, Specialist Finance Expert, and our senior lending desk structure senior, mezzanine, and stretched debt across 80+ UK property lenders. Furthermore, receive fast Decisions in Principle and bespoke facility sizing. Crucially, reviewing these criteria helps you secure the best development finance uk deals.
Promise Money is authorised and regulated by the Financial Conduct Authority (FCA). Borrowing against property carries risk.