Property investment

When you apply for development finance, lenders typically expect a comprehensive package of information to assess risk and viability. Commonly required items include:

• Details of the development site: its location, purchase price (if applicable), current value, and any constraints. 

• A full development appraisal: anticipated build costs, professional team (architects, contractor), schedule of works, contingency plans. 

• Gross Development Value (GDV) or projected value on completion. The lender will compare this to build costs and loan amount. 

• Evidence of planning status (permission or roadmap) and any restrictions or infrastructure / levies (e.g., s106, CIL). 

• Details of the borrower(s): company structure, directors’ CVs/experience, track record in development (or details of the team if you’re less experienced). 

• Security and exit strategy: what asset backs the loan, and how the loan will be repaid (sale, refinance etc.). 

• Supporting financial statements, credit history, bank statements and proof of funding for the parts not covered by the loan (developer equity) where required. 

Development finance is used by a broad range of property investors and developers. Examples include:

• Established property developers who buy land or buildings for conversion or new build, and who need to fund the build costs until sale or refinance.

• Small to medium-sized housebuilders and investors targeting moderate-sized projects (flats, houses, mixed-use) who want short/medium-term funding rather than long-term mortgages. 

• Investors undertaking commercial or mixed-use developments where traditional mortgage finance may not apply, so a specialist development facility is needed. 

• Sometimes newer developers or joint ventures, provided they can offer a strong team or partner to mitigate the experience gap (see next question).

Yes — being new does not automatically preclude you from applying for development finance, but lenders will expect you to demonstrate stronger mitigations around your lack of track record. Key points:

• Many lenders prefer developers with prior experience, but if you’re new you can still proceed by showing a strong team (experienced contractor, project manager), credible business plan, and an exit strategy. 

• You may need to provide a larger equity contribution (developer’s own funds) or accept more conservative terms (lower loan to value / higher cost). 

• Thorough preparation is essential: detailed costings, schedule of works, contingency built in, and a clear plan for repayment will strengthen your case.

• Consider starting with a smaller project to build track record before scaling up, or partnering with an experienced developer to enhance credibility.

In many cases, yes—but with important caveats.

• Some lenders will provide development finance even without full planning permission in place, but this tends to increase risk (and by extension cost or harder terms). 

• If planning permission is not yet secured, the lender will typically look at the strength of the application: location, use classification, likelihood of obtaining permission, and the time/ cost implications. Without permission the lender may require a bridging loan or other interim funding until plans are approved. 

• If permission is already in place (or permitted development rights apply), you’ll likely get access to better terms. Having planning permission reduces risk considerably. 

• When lacking planning, you should ensure you have contingency funds, a realistic time‐frame and exit strategy that accounts for potential delays or refusal of permission.