Ground-up versus refurbishment
Ground-up construction and heavy refurbishment can have different lender criteria, monitoring needs and contingencies.
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Moneykind business finance guide
Planning a property development project?
Development finance is specialist funding for property construction, conversion or significant refurbishment. It is often released in stages and depends heavily on the project appraisal, experience and realistic completion and exit plans.
Explore your finance options →What to know about property development funding
GDV and project costs
Lenders may assess gross development value (GDV), purchase cost, build budget, professional fees, contingency and expected profit.
Staged drawdowns
Funding may be advanced in tranches after inspections or monitoring surveyor reports. Plan cash flow around drawdown timing.
Experience and project team
Lenders often consider developer experience, contractors, planning permission, building regulations and project management.
Exit and delays
Repayment may rely on sales or refinancing. Delays, cost overruns or lower sale prices can threaten the exit.
Before you apply: Finance availability, pricing and terms depend on your circumstances and the provider. Consider independent legal, tax or regulated financial advice where appropriate. Moneykind introduces enquirers to third-party professionals; it does not itself make lending decisions.
How to prepare for an enquiry
Explain what you need
Set out the purpose of the funding, the amount sought, your timescale and how the borrowing will be repaid.
Gather the key information
Depending on the facility, a professional may ask for accounts, bank statements, forecasts, property or asset details and existing borrowing information.
Compare the full commitment
Ask about the total cost, fees, security, guarantees, repayment schedule, early exit terms and what happens if circumstances change.
Understand the introduction
Moneykind helps connect you with a relevant third-party professional. The professional will explain their services, charges and any applicable regulatory status.
Frequently asked questions
Do I need planning permission before applying?
Requirements vary. Some lenders will discuss a project early, but funding terms may depend on satisfactory planning and other conditions.
What is GDV?
Gross development value is an estimate of the completed project’s market value, not a guaranteed sale price.
Can development finance pay for all build costs?
Some facilities fund a significant proportion of eligible costs, but deposits, contingencies and borrower equity are often required.
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