Development Finance Calculator
Model senior loan amount, total interest and development profit for any ground-up residential or mixed-use scheme.
Calculate your development appraisal
* Additional fees may apply on a case-by-case basis: Legal Fees, Valuation Fee, Admin Fees, Title Insurance, General Insurance, Fund Transfer and others.
Enter your loan details above to see the cost breakdown.
Interest estimated on 60% average draw-down across the build period. Lenders typically require 15–20% profit on GDV minimum.
Results are indicative only. Actual rates and costs depend on your specific circumstances, security and lender. Learn more about Development Finance
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70%
Typical max LTC
65%
Typical max LTV of GDV
15–20%
Min profit on GDV
£0
Upfront broker fees
What is development finance?
Development finance is a specialist loan for ground-up construction of residential or mixed-use property. Unlike a bridging loan (which is drawn in full), development finance is drawn in tranches as construction progresses, reducing the interest burden on the developer.
Lenders advance against both the land value (day-one drawdown) and the build costs (released in staged drawdowns). The maximum loan is typically expressed as a percentage of total development costs (LTC) and also capped as a percentage of GDV.
Interest is usually retained or rolled up and repaid from sales proceeds at practical completion. Lenders appoint a monitoring surveyor to approve each tranche drawdown and verify the build is on programme and budget.
Lenders look for an experienced development team, a viable scheme with planning in place, and a credible sales strategy demonstrating the GDV is achievable at the required timeframe. Developer equity contribution is typically 20–30% of total costs.
The Process
Feasibility & Appraisal
Prepare a full development appraisal showing land, build, finance costs, sales fees, contingency and GDV. The profit on GDV must stack — typically 15–20% minimum.
Lender Selection
We identify lenders with appetite for your scheme size, location and sector. Some lenders specialise in small schemes; others focus on volume housebuilders.
Due Diligence
Lender appoints monitoring surveyor and RICS valuer. Planning permission, build contracts, warranties and title are checked. Conditions precedent agreed.
Drawdown & Monitoring
Day-one drawdown covers land. Build tranches released as monitoring surveyor confirms works on programme. Interest retained or rolled up. Repaid from unit sales.
FAQs
Frequently asked questions
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No obligation. No upfront fees. Speak with a specialist.
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