Finance Built for Property Developers and Investors
Whether you’re breaking ground on a new build, converting a commercial building into residential units or undertaking a major refurbishment, securing the right development finance is critical to the success of your project. At Belgrave Pendleton, we provide specialist guidance on development finance for property developers and investors — helping you understand your options, structure the right funding and move forward with confidence.
Development finance is a specialist area of property finance, and the right lender and structure can make a significant difference to your project’s viability and profitability. We ensure you have the appropriate financing in place from the very beginning.
How We Can Help
We take the time to understand your project, your experience and your financial circumstances — then work across the whole market to find the most suitable development finance for your needs. This includes:
- Describing how development finance operates and the factors lenders consider
- Helping you explore funding options suitable for your project type and size
- Outlining all costs clearly, including interest rates, arrangement fees and drawdown structures
- Supporting you with documentation and managing lender communication throughout
- Helping you plan your exit strategy and longer-term finance from the outset
Types Of Development Finance We Work With
Ground Up Development Finance
Funding available for new residential or mixed-use developments, ranging from individual homes to larger projects with multiple units. Development finance for new construction projects is usually arranged as a facility that provides funds in phases throughout the building process, with each portion released based on independently confirmed construction expenses. We work with lenders who are comfortable with a wide range of project sizes and can help you find the right funding structure for your scheme.
Refurbishment Finance
Short to medium term finance used to fund property improvement projects — from light cosmetic refurbishments through to heavy structural works. The type of financing offered will be determined by the project’s scope and specifics. Light refurbishment projects may be funded through bridging finance, while heavier works typically require a specialist development finance facility. We’ll help you find the most suitable solution for your project from the outset.
Commercial to Residential Conversions
Converting commercial buildings into residential units is an increasingly popular strategy for property investors — particularly under Permitted Development Rights. These projects require specialist lenders who understand the unique challenges and planning considerations involved. We work with lenders experienced in commercial to residential conversions and can help you structure the right finance for your project.
How Development Finance Works
Development finance is typically structured differently to standard buy to let or bridging finance. Key features include:
- Loan to Cost (LTC) and Loan to Gross Development Value (LTGDV) — lenders assess how much they are willing to lend based on the total project costs and the projected end value of the completed development
- Staged Drawdowns — funds are released in stages as the build progresses, with each drawdown independently monitored and verified
- Interest Rolled Up — interest is typically rolled up into the facility rather than paid monthly, preserving cash flow during the build
- Monitoring Surveyor — most lenders appoint an independent monitoring surveyor to oversee the build and approve each drawdown stage
Understanding how these aspects function is crucial for managing your project’s finances successfully. We’ll walk you through every aspect clearly before you proceed.
Exit Finance and Refinancing
Having a clear exit strategy is one of the most important aspects of any development project — and one that lenders will want to see before approving your finance. An exit strategy outlines how you intend to repay the development finance facility when the term ends, usually by choosing one of two main approaches:
Sale of the Completed Units
Selling the completed development to repay the facility and realise your profit.
Refinancing onto a Longer-Term Mortgage
Keeping the finished properties as long-term investments and switching to buy-to-let or portfolio mortgage financing. This is an increasingly popular strategy for investors looking to build long-term rental income alongside their development activity.
We work with you to plan your exit strategy from the outset — and when the time comes, we can help you refinance onto the right longer-term mortgage product, whether that’s a standard buy to let, a portfolio mortgage or a limited company structure.
Our Simple Process
Initial Consultation
We take the time to understand your project, your experience as a developer and your financial circumstances — building a clear picture of what you’re looking to achieve and what finance options may be available to you.
Project Assessment
We help you understand how lenders will assess your project — including loan to cost ratios, projected gross development value and the strength of your exit strategy — so you can move forward with a realistic picture of what’s achievable.
Review of Options
We search the whole market to identify the most suitable development finance options for your project — presenting them clearly, including all costs, terms and drawdown structures, so you can make a confident and informed decision.
Application Support
We manage the application process on your behalf, handling documentation and liaising directly with lenders, monitoring surveyors and solicitors to keep your project on track.
Drawdown and Ongoing Support
We remain available throughout your project to support with drawdown requests and any changes in circumstances — and when you’re ready to exit, we’ll help you plan and arrange your longer-term finance.
Frequently Asked Questions
Development finance providers generally offer funding of up to 70% of the overall project expenses (Loan to Cost) and up to 65% of the anticipated Gross Development Value (LTGDV) once completion of the project. The precise amount you can borrow will be influenced by your background, the quality of your proposal, and your personal financial situation. We’ll help you understand what’s realistic for your project before you apply.
Many lenders place significant emphasis on the applicant’s experience, especially for larger or more complex developments. However, several lenders are willing to consider less experienced developers, particularly for smaller or more straightforward projects, provided the right professional team is in place. We have access to the full range of lenders and will assist you in finding those whose requirements match your level of experience.
Development finance is generally provided in instalments throughout the construction process, a method known as drawdown. Each drawdown occurs once a specific phase of the build is finished and confirmed by an independent monitoring surveyor selected by the lender. We’ll guide you through the drawdown timeline and clarify the requirements at every stage.
Gross Development Value (GDV) represents the anticipated market price of a development after all units have been completed and either sold or leased. A credible and thoroughly supported GDV is vital for a successful application for development finance.
Yes — and this is a very common exit strategy for investors who want to retain the completed units as rental properties. Once the development is complete and the units are tenanted, you can refinance onto buy-to-let or portfolio mortgage products. We can help you plan this from the outset and arrange the right longer-term finance when the time comes.
Why Choose Belgrave Pendleton
Specialist knowledge of development finance and the property development process
Whole-of-market access to development finance lenders and specialist providers
Experience across ground-up new builds, refurbishments and commercial conversions
Clear, transparent guidance on all costs, structures and lender requirements
Support from initial enquiry through to drawdown, completion and exit finance
A strategic approach — helping you plan your finances from development through to longer-term investment
Ready To Finance Your Development Project?
Whether you’re embarking on your initial development or expanding an existing portfolio, Belgrave Pendleton is ready to support you. We’ll take the time to understand your project, find the right development finance and support you from initial application right through to completion and beyond.
Get in touch to arrange a free, no-obligation consultation
It’s important to note that failing to maintain your financial repayments could put your property at risk. Development finance is a specialised product, and every project involves some degree of risk. We strongly recommend taking independent legal and financial advice before proceeding