Flexible funding for land acquisition, ground‑up construction, conversions, heavy refurbishments and multi‑unit developments, as well as finance for commercial development. As a specialist development finance broker, we structure and source funding across the market, aligning lender appetite with the specifics of your project, from acquisition through to development exit. We arrange short-term funding for property developers and investors to fund the purchase and construction (or refurbishment) of property, typically repaid through sale or refinance on completion, often onto longer-term investment or buy-to-let mortgages.
Development finance is a specialist form of short-term property funding used to acquire land, fund construction works, and deliver property projects that fall outside the scope of conventional mortgage lending. It is commonly used by property developers, investors, landowners and, in some cases, first-time developers to fund new-build developments, conversions, major refurbishments and mixed-use schemes.
Unlike a traditional mortgage, funds are typically released in staged drawdowns as the development progresses, rather than in a single advance. This allows borrowers to access capital throughout the build process, with each release of funds linked to construction progress and monitored by an independent monitoring surveyor.
In the UK, development finance is commonly provided by specialist banks and non-bank lenders, with facilities structured around a project's costs, Gross Development Value (GDV), and proposed exit strategy. When assessing an application, lenders will typically consider the experience of the development team, the construction budget, planning position, GDV, and the viability of the proposed exit strategy before committing funds.
Development finance provides the capital needed to move a project from land acquisition through construction to completion, with repayment typically coming from the sale of the completed scheme, the refinance of retained units onto a longer-term facility, or another agreed exit strategy.
Development finance is designed to fund each stage of a property project, from site acquisition through construction to eventual sale or refinance. Unlike a traditional mortgage, the full loan amount is not released on day one. Instead, lenders advance funds through staged drawdowns, allowing capital to be released as the development progresses. Interest is often rolled up or retained within the facility, meaning borrowers do not usually make monthly repayments during the construction phase.
At the outset, the lender will assess the proposed scheme, including the planning permission, construction budget, anticipated Gross Development Value (GDV), borrower experience and proposed exit strategy. These factors help determine how much can be borrowed and whether the project meets the lender's appetite.
Once the facility is in place, an initial advance is used to acquire the site or refinance existing borrowing. Future drawdowns are then released against construction progress. Before each drawdown, an independent quantity surveyor will inspect the site, review costs against the approved budget, and confirm that construction has progressed sufficiently for the next release of funds.
Because construction costs are incurred gradually rather than all at once, staged drawdowns reduce borrowing costs for the developer while allowing the lender to monitor progress and control risk throughout the project.
Repayment typically comes from the sale of completed units, the refinancing of retained properties onto a longer-term investment, multi-unit freehold block mortgage or buy-to-let mortgages, or another agreed exit strategy.
Development finance for first-time developers, focused on how lenders assess experience, structure risk and fund projects without an established track record.
Development finance for small projects, from single builds to modest schemes, structured around how lenders assess risk, fund delivery, and support a credible exit.
At Adler Green, our process reflects how property development finance is structured via a development finance broker, from initial appraisal through to staged drawdowns and final exit.
Clients also find out development finance calculator useful to appraisal new schemes.
Review key development jargon in our development finance glossary.
Development finance is not a single product. Terms, leverage and structure vary significantly between lenders depending on the scheme, borrower and exit strategy. Working with a development finance broker allows you to compare options across the market and structure the facility correctly from the outset.
Clients also find our development finance calculator extremely helpful in modelling their development viability.
Read some of our frequency asked development finance questions. You can also check out some commonly used development jargon in our development finance glossary.
Development finance is a short-term funding facility used by property developers to acquire land, fund construction costs, or both. Funds are usually released in stages as the build progresses, with each drawdown supported by a monitoring surveyor's report. Development finance requires an appropriate exit such as sale or refinance of the new build units.
It depends on your project, but many development finance lenders offer up to 65–70% of GDV and 80–90% of total costs. This might mean up to 70-75% of the initial purchase price, and up to 100% of the build costs. Your leverage will depend on experience, location, planning status and lender appetite.
Having full planning permission will significantly improve your options. However, in some cases, outline consent or a strong planning position may still be considered, depending on the lender and the project.
Where planning is not yet secured, development finance for land purchases could be beneficial.
Some lenders will fund up to 100% of build costs, provided the scheme fits within their overall lending parameters, particularly loan-to-cost and loan-to-GDV limits.
Development finance provides funding for the purchase of land, the construction of a new development, or both. The lender will assess the project's costs, projected Gross Development Value (GDV), developer experience, and proposed exit strategy before agreeing terms.
Once the facility is in place, funds are usually released in stages throughout the build rather than in a single advance. Each drawdown is typically approved following a monitoring surveyor's inspection to confirm that works have been completed as planned. Interest is often charged only on funds that have been drawn, helping to manage costs during construction. The loan is repaid when the completed development is sold or refinanced onto a longer-term facility.
Yes, some lenders will consider first-time developers where the project is straightforward and supported by experienced contractors or professional teams. The strength of the overall proposal becomes particularly important in these cases.
Straightforward cases can complete within two to four weeks. More complex projects may take longer, depending on planning, valuation and legal requirements. Early engagement helps ensure timescales can be met.
Bridging finance provides short-term funding, typically up to 12 months, often used for acquisitions or lighter refurbishment. Development finance is designed for more substantial construction projects, usually over 12–24 months, with funds released in stages as the build progresses.
A client with industry experience, but undertaking their first project as a developer in their own right, exploring funding for the construction of a high-specification residential property. Key considerations included presenting transferable experience, tender packages and a clear exit strategy through sale via an age
An experienced developer sought funding for part demolition of an existing property and construction of a nine-unit residential scheme. Key considerations included loan-to-cost, staged drawdowns and aligning the funding structure with the proposed exit via sales of the units on completion, via a local agent.
Explore the latest guides, case studies, market commentary and tools relating to Development Finance.
Adler Green Ltd is an Appointed Representative of Connect IFA Ltd, which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm reference number 1045424. The FCA does not regulate some Business Buy-to-Let Mortgages and Commercial Mortgages to Limited Companies. Adler Green Ltd is registered in England and Wales (company number 16714313) at registered address 71-75 Shelton Street, London, WC2H 9JQ. We are registered with the Information Commissioner's Office as ICO No. ZB987489.
The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Your property may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice, the precise amount will depend upon your circumstances. Your consultant will confirm the amount before you choose to proceed. We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.