Development finance

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Development finance is generally used to fund a construction project – whether for new developments or for the conversion and refurbishments of residential or commercial land and property.

Usually, development finance is split into two parts. The first section is designed to help with the purchase of the site; lenders will generally advance a percentage of the purchase price. The second section is intended to finance the build. Generally speaking, a lender will often advance the total cost for this in stages, as and when they are completed. The lender will then certify the work and funds for each stage so the developer is able to pay suppliers. This means you will often need to have sufficient cash flow to fund the initial stages until you are reimbursed.

Although market movements in recent years have curbed the appetites of traditional development finance lenders, a host of new lenders have stepped in to fill the void. Now, development finance is more widely available than it has ever been.

Of course, more choice comes with its own pitfalls. Getting the right advice is of paramount importance, and having an independent, expert broker in your corner will help you navigate the marketplace successfully. Our advisers are on hand to discuss viability, timescales and rates 24 hours a day, 7 days a week.