Skip to the content ↷ Menu 0116 464 5544 Contact details What is Development Finance? Development Finance is a popular form of short-term finance used for property development and construction projects. It can fund the purchase of a plot of land with planning permission, or an existing building renovation. It can also be used to cover the associated costs of materials and labour for both residential and commercial developments. Development Finance schemes are available to new, first-time, or experienced property developers. This flexible finance is used for ground-up developments such as building on land, although can also be used for heavy property renovations, such as a barn conversion or property layout changes. So, how does it work? Development Finance is broken down in to two stages. The first stage is used to purchase land or an existing property for development. In some instances, lenders will allow borrowing of up to 75% of the current value. The second part of the loan is used to pay for the build costs. This part is normally funded in stages as the project progresses. Generally, each stage is signed off by a surveyor to allow the next stage of funds to be released by the lender. Some lenders will allow borrowing of up to 100% of the build and labour costs. How much can I borrow using Development Finance? The maximum loan amount you can borrow depends on three main factors: The current value of the land or existing property. The build costs. The ‘Gross Development Value’ also known as GDV. Which is the estimated value of the completed project. Typically, up to 75% loan to gross development value is available. This means that if the Gross Development Value is £500,000, borrowing of up to £375,000 is available. LET US BEAT YOUR QUOTE Data Protection - ICO Registered ZA115985 WHY US! We beat any quote Fast completions UK wide Open 7 days until late 5* Trustpilot feedback No upfront fees Market leading rates FCA regulated 667602 Video UK Property Finance Bridging Loans Development Finance Secured Loans Buy to Let Right to Buy Self Build Mortgages Introducers Scheme The advice and processing of all financial products introduced via this website will be handled by UK Property Finance Ltd, which is authorised by The Financial Conduct Authority (FCA) no 667602. The FCA do not regulate all mortgages such as Buy to Let and Commercial. Think carefully before securing debts against your home. Your property could be repossessed if you do not keep up repayments on your mortgage on any other debt secured on it.