4.8 Out of 5
Ground-Up Development Finance
- Ground-up development loans offer funding based on land value, covering 100% of construction costs and approximately up to 70% of the GDV.
Questions
Ground-Up Development Finance for New Builds and Conversions
Ground-up development finance funds the full lifecycle of a new-build project — from land acquisition through to practical completion. It is a specialist product, structured differently from bridging finance, with funding released in tranches as construction progresses rather than as a single lump sum. This staged drawdown approach means you only pay interest on funds you have drawn, keeping the cost of borrowing in line with the pace of your project.
Lenders will typically fund up to 70% of land value and up to 100% of build costs, subject to the overall loan not exceeding a set percentage of the gross development value (GDV). The specific terms available to you will depend on your experience, the strength of your planning position, the quality of your cost and programme, and the profile of the exit — whether that is open market sale, refinance, or a combination of both.
We work with first-time developers as well as experienced teams. For less experienced borrowers, lenders will place greater weight on the strength of the professional team — architect, quantity surveyor, and main contractor — and may favour a more modest first project. We are straightforward with clients about what is achievable at each stage of their development career and will structure applications to put the strongest case to the right lender.
Product Features Include:
- First-time developers considered
- Terms up to 24 months
- Available in England and Wales
- Quick decision in principle
- Planning gain taken into account
Case studies
Some of our projects
Land Bridge for 220 Apartments
£10,400,000
Airspace Development
£1,200,000
CBILS Refinance for 4 Detached Houses
£3,400,000
Enquiry to Completion in 4 weeks
£3,600,000
our team
team of experts
FAQs
Common Questions & Answers
How does ground-up development finance work?
Ground-up development finance is a specialist loan designed for building new properties from the ground up — whether residential, commercial, or mixed-use. Unlike bridging finance, which is typically drawn in full at completion, development finance is released in stages as construction progresses. This means you draw down funds at key milestones throughout the build, and you only pay interest on what has been drawn.
A typical facility covers the purchase of the land and the full cost of construction. Lenders will assess the project based on the gross development value (GDV) — the estimated worth of the completed scheme — and will structure the loan around your build programme, cost schedule, and exit strategy. The exit is usually a sale of the finished units or a refinance onto longer-term debt.
We are not a lender. We are a broker with access to a broad panel of specialist development finance lenders, and our role is to match your project to the lender best placed to fund it.
How do I go about applying for ground-up development finance?
The process starts with a conversation about your project — what you are building, where, your experience, and your target end value. From there, we help you pull together the information lenders need to make a decision: a cost breakdown, build programme, professional team details, planning status, and your proposed exit strategy.
Once the application is ready, we present it to the lenders on our panel who are best suited to your project type and scale. If a lender is interested, they will typically issue a decision in principle before moving into formal due diligence, which includes a valuation, legal review, and verification of your build costs and programme.
We manage the process from start to finish — chasing valuers, coordinating with solicitors, and keeping you updated at every stage. If you have a specific deadline, whether for a land exchange or a planning condition, let us know and we will work to that timeline.
Can I get ground-up development finance with poor credit?
It is possible, though it depends on the overall strength of the project. Development finance is asset-backed and project-driven, so lenders place significant weight on the viability of the scheme, the quality of the professional team, and the credibility of the exit strategy. A less-than-perfect credit history does not automatically rule you out.
That said, adverse credit can affect which lenders will consider your application and the terms they offer. Some specialist lenders are comfortable with historic credit issues provided the project fundamentals are strong and the borrower is transparent about their circumstances.
We work across a wide panel of lenders with different appetites for credit risk. If you are upfront with us about your history, we can tell you honestly what is achievable and target your application at the lenders most likely to support it.
How quickly can I obtain ground-up development finance?
Timescales depend on several factors — how well prepared your application is, whether planning is in place, the complexity of the build, and how quickly third parties such as valuers and solicitors respond. A straightforward, well-documented application can typically reach completion within four to eight weeks.
The early stages move fastest when you have your cost schedule, build programme, and planning documents ready before you apply. We prepare the full application pack before approaching lenders, which means lender feedback and a decision in principle can often come through within a few days of submission.
If you are working to a fixed deadline — for example, an exchange date on a land purchase — let us know at the outset and we will structure the process around it.
Can ground-up development finance be used for mixed-use developments?
Yes. Mixed-use schemes — for example, residential units above ground-floor commercial or retail space — are a common use case for development finance. Lenders assess these projects based on the overall GDV of the completed scheme, taking into account the projected value of each component.
The key to a successful mixed-use application is demonstrating that each element of the scheme has a clear market and a credible exit. Lenders will want to see evidence of demand — whether that is comparable sales data for the residential units or pre-lets or market analysis for the commercial space.
Mixed-use projects can actually be attractive to lenders because they spread risk across different income streams. We regularly place mixed-use schemes with specialist lenders and can advise on how to present your project in the way that gives it the best chance of approval.
