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What is Development Finance?
Development finance is a specialist form of property lending used to fund the construction or conversion of residential and commercial properties. Unlike standard commercial mortgages, development finance is typically structured as a facility that is drawn down in stages as the build progresses, with interest rolling up during the construction period and the facility repaid on completion, either through the sale of units or refinance onto a longer-term product.
Typical Development Finance Parameters
| Parameter | Typical Range |
|---|---|
| Loan-to-GDV (Gross Development Value) | Up to 65–70% LTGDV |
| Loan-to-Cost | Up to 80–90% of total development cost |
| Loan Term | 6–24 months |
| Interest | Rolled up or serviced |
| Exit | Sale of completed units or refinance |
Development Finance We Arrange
- Residential ground-up development finance
- Commercial and mixed-use development loans
- Permitted development conversion finance
- Refurbishment and heavy renovation finance
- Light development and change of use
- Land purchase with and without planning permission
- Mezzanine and stretched senior development finance