Innovate with Development Funding

What is development finance?

Development Finance is different to a traditional mortgage. The property may not be complete, therefore the lender will assess the predicted value of the building after the project is finished.

It is most commonly used to finance new build, conversion and renovation projects.

How does it work?

We will review the project, discussing initial costs, works required along with interest and associated fees in order to assess viability.

We would also look at timescales that include the various stages of the build / renovation in order to consider loan terms.

Lending options can then be considered and tailored around your individual circumstances and the deal itself.

Key features

  • Whole of Market
  • 100% of Build Costs Available
  • Land without planning / Subject to Planning 
  • Joint Venture Funding
  • Conditional Contracts 
  • Option Agreements

Mainstream lenders

These are major high street banks. Typically the cheapest form of lending, however, they often have the strictest criteria.

They would usually deal with existing clients, experienced individuals, with lending restricted to around 50-60% of Gross Development Value (GDV).

Merchant banks

These are specialist banks, which still include well-known names with further lending options. This is a better option for experienced individuals who know their business. You could receive a lending offer of up to 60-70% of the GDV.

Specialist lenders

These independent financial organisations have a strong yet flexible approach to lending. They can handle newcomers as well as experienced individuals and offer lending at 70-85% of GDV.

Private lenders (Joint Venture)

These wealthy individuals are willing to take a unique approach to every case. They will think outside of the box and offer bespoke solutions should the project require them.

You may be able to achieve 100% of funding, and also consider a deal on a joint venture basis.

Mezzanine funding

This type of finance can be used to top up one of the above options. A senior debt lender will lend the bulk of the funds within the lending limits. A mezzanine funder can lend further funds above this on a second charge basis.

These additional funds will have a higher interest rate but can provide invaluable cash flow.

Every development is different. If you have a query, our team of finance experts are available and ready to help.

Lendese Commercial Limited is an appointed Representative of Commercial Finance Brokers UK Limited which are authorised and regulated by the Financial Conduct Authority.

Talk to us!

Speak to an advisor



    Our customers’ top 5 questions about development finance.

    Lendese have access to thousands of finance deals, including many exclusive deals not available elsewhere, along with specialist lenders who can assist with unique situations.


    Development finance is structured differently compared to a traditional mortgage. The lender will assess the predicted value of a property based on your presented plans. Your lender will monitor you throughout the project and usually release build money in stages.

    You can use development finance to fund; New build, renovations, conversions and anything with an element of works needed for increased value.

    It would be really helpful to start with;

    • Purchase price of the property/land
    • The predicted value of the property finished
    • Building and renovation costs 
    • Planning permission Info
    • Details of the people involved in the project
    • Previous experience 

    With the above information we can definitely get started.

    A typical development finance can take anywhere from 8-12 weeks. Of course if there is an urgent need or a prospective project in the future, we can tailor our advice and work with lenders who will consider your circumstances.

    Development finance is generally unregulated, unless the development is being completed with the intention of becoming your home.