Capital Finance Group
Development Finance
Development finance funds the construction of new properties, from a single house to multi-unit schemes. Funds are typically released in stages as the build progresses, helping you manage costs and keep the project moving from site purchase through to completion.
Speak to a Property Finance SpecialistDevelopment Finance
Lenders want to back well-planned projects with a credible team. We help you present your scheme clearly, from appraisal and costings to exit plans, and introduce you to development lenders whose appetite matches the size and type of your project.
Who it suits
- Ground-up developments of residential, commercial or mixed-use schemes
- Experienced developers and first-time developers with a strong professional team
- Projects with planning permission in place or nearing approval
- Developers seeking to fund both land and build costs
How it works
- Lending is often assessed against both total project cost and the gross development value (GDV)
- An initial advance may help with the land purchase, with build costs released in stages
- A monitoring surveyor typically signs off each stage before funds are released
- Interest is usually rolled up or retained and repaid on sale or refinance
- Senior debt can sometimes be supplemented with mezzanine or equity funding
Things to consider
- Lenders will look closely at your experience, contractor, build programme and cost plan
- You will normally need to contribute your own capital to the project
- Costs can include arrangement, exit, monitoring and valuation fees
- Plan for contingency, as delays and cost overruns affect profit and repayment
- Security is taken over the site and personal guarantees are often required
Planning your next development? Speak to an expert to structure funding for your scheme.
Finance is subject to status and lender criteria.
Discuss development finance
Planning your next development? Speak to an expert to structure funding for your scheme.
Speak to a Property Finance Specialist