Development Funding
Development Funding: Unlock Funding for Your Property Projects
Development funding is a specialized loan designed to fund property development projects. Whether for refurbishing an existing property, constructing new builds from the ground up, or acquiring planning permissions, development finance provides the financial backing needed to turn property ambitions into reality. It is ideal for developers looking to finance new sites, extensions, or projects with existing planning permissions.
At Giles Finance, we provide access to tailored property development loans for a wide range of projects, including new build developments, refurbishment projects, and extensions. With funding options covering up to 90% of the total project cost, including land acquisition, our development finance solutions ensure that developers can execute their projects with confidence. In some cases, property development finance up to 100% is available when additional security is provided, making it a highly flexible and valuable funding option.
One of the standout features of our development finance solutions is the ability to fund part-build developments. If your existing bank has withdrawn support or if you run out of money mid-project, Giles Finance can help bridge the financial gap and ensure the completion of your development.
- Loans from £10,000 to £20 million.
- Property development loans are available from £50,000 to £50 million.
- We can issue a decision in principle for property development loan, subject to status and due diligence within minutes, and funds can be with you within days.
- Property development finance is available up to 70% of the completed project value.
- We can fund up to 100% of the cost of work including professional costs.
- Property development loans are available for new builds.
- Property development finance is available for refurbishments and conversions.
Our property development loans extend to both residential and commercial projects, including houses and blocks of flats. This flexibility sets us apart in the market, as many lenders are unwilling to fund such projects. With Giles Finance, developers can secure the financial resources they need to pursue diverse property development ventures, regardless of scale.
We also cater to applicants with less-than-perfect credit histories. Development finance options are available to those with credit issues, such as CCJs, defaults, or mortgage arrears. Our financiers prioritize the quality and potential of the development project over the applicant’s financial history. This makes our property development funding solutions accessible to a broader range of developers.
While experience in property development is preferred, we understand that not all applicants will have a track record of completed projects. First-time developers can still qualify for funding, as the experience of contractors or project managers involved in the development may suffice. Our goal is to support both experienced and first-time developers in achieving successful outcomes for their projects.
Interest rates for property development finance are typically charged on an interest-only basis, ranging from 0.55% to 1.5% per month, depending on the quality of the project. Terms are generally available for up to 36 months, and in many cases, interest can be rolled up and settled from the sale or refinance of the completed property. This flexible repayment structure ensures that developers can focus on completing their projects without immediate financial strain.
At Giles Finance, we pride ourselves on providing property development finance solutions tailored to the unique needs of our clients. Whether you’re an experienced developer or embarking on your first project, we offer the financial tools and expert guidance needed to bring your vision to life.
Our development finance services cover a wide range of project types, including residential, commercial, and mixed-use developments. We work closely with a network of trusted lenders to secure the most competitive terms and rates for your project, ensuring that you have the financial support required to succeed.
If you’re seeking a flexible, accessible, and tailored financing solution for your next property development project, look no further than Giles Finance. From part-build developments to large-scale construction projects, we are here to provide the funding and expertise you need to make your property development a success.
Where we advise: we arrange development funding for clients across England and Wales, working from our offices in Willenhall, Dagenham, Putney and Rainham. See areas we cover for the postcodes each office serves.
Development finance structures and indicative terms (October 2026)
Development lenders size a facility against two measures at once: loan-to-cost (LTC) — the share of land, build and professional costs they will fund — and loan-to-gross-development-value (LTGDV) — the loan as a share of the finished scheme’s value. The lower of the two sets the facility. The structures below can be combined to reduce the cash a developer has to put in.
| Structure | Max LTGDV | Max LTC | Indicative rate | Typical fees |
|---|---|---|---|---|
| Senior development loan | 60% – 65% | Up to 80% – 85% | 0.55% – 0.85% a month (c. 6.5% – 10% a year) | Arrangement 1.5% – 2%; exit 0% – 1.5% of GDV |
| Stretched senior | Up to 70% | Up to 90% | 0.85% – 1.10% a month | Arrangement 2%; exit 1% – 1.5% |
| Mezzanine (behind senior debt) | Up to 75% – 80% combined | Up to 90% – 95% combined | c. 15% – 20% a year, or a profit share | Arrangement 2% – 3% |
| Equity joint venture | Up to 100% of costs with senior debt | Up to 100% | Profit share, typically 40% – 50% | Agreed per deal |
| Refurbishment and conversion (incl. permitted development) | Up to 70% | Up to 90% of works | 0.65% – 1.25% a month | Arrangement 1.5% – 2% |
| Development exit loan | Up to 75% of GDV | — | 0.55% – 0.85% a month | Arrangement 1% – 2% |
Interest is charged only on the money drawn and is rolled up into the loan, so there are no monthly payments during the build. Build costs are released in stages against monitoring surveyor sign-off.
Indicative ranges only, correct as at 2 October 2026, and dependent on the scheme, location, planning position and the developer’s track record.
Worked example: four houses with a £1.6 million GDV
A developer with two completed schemes has planning for four three-bedroom houses. The site costs £400,000, the fixed-price build contract is £640,000 and professional fees and contingency are £60,000. An agent’s report puts the gross development value at £1,600,000.
| Total costs (land, build, fees) | £1,100,000 |
| Facility at 85% loan-to-cost | £935,000 |
| Check: 65% of GDV | £1,040,000 — so the 85% LTC limit applies |
| Developer cash contribution | c. £165,000 |
| Arrangement fee (2%) | £18,700 |
| Interest at 0.75% a month, rolled up over a 15-month build and sale (estimated on the average drawn balance) | c. £67,500 |
| Sales costs (2% of GDV) | £32,000 |
| Estimated profit | c. £381,800 — about 24% of GDV |
Lenders generally want a projected profit of at least 20% of GDV (or around 25% on cost) so that the scheme can absorb a fall in values or a build overrun. This scheme clears that test. If the developer wanted to reduce the cash input further, a mezzanine layer or an equity partner could fund most of the £165,000 in exchange for a share of the profit. Once built, a development exit loan can repay the build facility and give time to sell the units at full value. You can model your own scheme with the development finance calculator.
Figures are illustrative and rounded. Interest is an estimate based on a typical drawdown profile. This is not an offer of finance.
What development lenders will ask for
- Planning: full planning permission (or permitted development approval), the decision notice, conditions and any Section 106 or Community Infrastructure Levy liabilities.
- Costs: a detailed build cost plan, ideally a fixed-price or JCT contract, and a contingency of 5% – 10%.
- Value: a gross development value supported by local agents and comparable sales; the lender will commission a RICS valuation.
- Team: your track record, CVs for the contractor, architect and project manager, and the build programme.
- Warranties: a structural warranty such as NHBC, LABC or Premier Guarantee for new-build units — essential for buyers to obtain mortgages.
- Structure: usually a limited company SPV, with personal guarantees from the directors.
How the process runs
- Week 1: appraisal reviewed and indicative terms from suitable lenders.
- Weeks 2–4: valuation and monitoring surveyor’s initial report, credit approval.
- Weeks 4–8: legal work, land purchase or refinance, then staged drawdowns through the build.
Buying a site before planning is granted, or a property to refurbish quickly? A bridging loan is usually the first step. For commercial schemes held as investments once complete, see commercial mortgages. Related guides are collected in our bridging and development finance hub.
Last reviewed: 2 October 2026 by Dennis Galley, Operations Director & Compliance Officer at Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority (FRN 726857). Development finance arranged for companies and for property that will not be occupied by the borrower or their family is generally not regulated by the FCA. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Contact Giles Finance today to learn how our development finance solutions can help you achieve your property goals.
Giles Finance – Empowering Your Property Development Dreams.
The number for the development team is 020 8088 2211
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Development Funding FAQ's
What is development finance used for?
Development finance funds the ground-up construction or heavy refurbishment of residential or commercial property, released in stages as the build progresses.
How is development finance released?
Funds are typically released in tranches against certified stages of work, verified by a monitoring surveyor, rather than as a single lump sum.
What is GDV and why does it matter?
GDV, or Gross Development Value, is the estimated value of a completed development; lenders size facilities against a percentage of both build cost and GDV.
What exit strategy do lenders expect?
Common exit routes are sale of the completed units or refinancing onto an investment or commercial mortgage once practical completion is achieved.
What LTC and LTGDV can I borrow?
Lenders typically fund up to 65-70% of total build cost (LTC) and up to 60-65% of gross development value (LTGDV), with the exact figures depending on experience, location and scheme risk.
Do I need previous development experience?
Experienced developers generally access the widest range of terms, but a number of lenders will support first-time developers, often with additional oversight or a lower gearing level.
What is a monitoring surveyor and why is one appointed?
A monitoring surveyor is an independent professional appointed to verify build progress and costs before each drawdown is released, protecting both the lender and the overall viability of the project.
Can I fund the land purchase and build costs together?
Yes, development finance is usually structured to cover both the land or property acquisition and the subsequent build costs within a single facility.
What happens if my development runs over budget?
Most facilities include a contingency allowance, but significant overruns may require additional funding; discussing cost buffers with your lender at the outset helps avoid delays later in the build.
Can development finance be arranged alongside planning permission still pending?
Some lenders will offer conditional terms ahead of planning being granted, though drawdown is normally only possible once full planning permission is in place.
Do you arrange development finance across England?
Yes. Ground-up development loans and refurbishment funding are arranged on sites throughout England and Wales, from London and the South East to Birmingham, Manchester, Leeds and Bristol, for both first-time and experienced developers.
What loan size and structure can development funding take?
Facilities typically fund a percentage of land cost plus one hundred percent of build costs, drawn in stages against monitoring surveyor sign-off, with interest rolled up to exit. We structure the facility around gross development value, loan to cost and your exit strategy.