Development Finance
What is Development Finance?
Development Finance is a funding solution designed for property developers and investors undertaking construction, refurbishment, or conversion projects. Unlike traditional commercial mortgages, development finance is structured to match the specific needs of a project, with funds released in stages based on progress.
Who is Development Finance For?
➡️ Property Developers building new residential or commercial properties they intend to sell or keep to rent out.
➡️ Investors purchasing land for development.
➡️ Landlords converting or refurbishing properties for rental.
➡️ Buy-to-Sell Investors requiring finance to complete heavy refurbishments before selling properties.
➡️ Property build projects where staged payments are required.
Key Benefits of Working With Burghley FS
✅ Access to a Wide Range of Lenders – Including specialist lenders and products not available directly to borrowers.
✅ Bespoke – Every BTL or Holiday Let loan is structured specifically to suit your unique requirements.
✅ Competitive Rates & Terms – We will negotiate with lenders directly on your behalf to get the best overall product suited to you.
✅ Fast Turnaround – We help secure funding quickly, and will continually communicate with lenders for regular updates.
✅ Independent & Unbiased – Our focus is finding the right finance for you and your Commercial project.
✅ Underwriting Knowledge – With over 10 years experience as an Underwriter, we understand how the lenders view each application.
✅ Full Service – Our service is a complete one; we do the hard work for you, giving you freedom to concentrate on your project.
How Can Burghley FS Help?
As a specialist BTL and Holiday Let mortgage broker, with extensive experience as Underwriters ourselves, we work with a wide range of lenders to navigate intricacies of your circumstances and find the best financing solutions for your rental property investments.
🔹 Bespoke Funding Solutions – Every Development Finance case is totally unique, so we structure our conversations with you and the lender to suit your unique vision and goals.
🔹 Access to a wide Development Lender Network – Including private lenders and specialist Development Finance providers.
🔹 Fast & Efficient Process – We handle all negotiations, paperwork, and lender communication on your behalf to ensure a smooth transaction.
🔹 Independent & Unbiased Advice – We focus solely on finding the best Development Finance for you.
Common Questions
❓ “How does development finance work?”
Development finance is released in stages (tranches or drawdowns), with funds drawn down as the project progresses. Lenders typically release an initial amount for land acquisition or the initial build phase, and subsequent tranches thereafter as the development progresses.
❓ “How much can I borrow?”
Loan amounts can range anywhere from £100,000 to £50,000,000+, depending on project size and lender criteria. Lenders can typically offer up to 70% of land purchase costs and 100% of construction costs, subject to overall Loan-to-Gross Development Value (LTGDV).
❓ “What is the typical loan term for development finance?”
Development finance is usually offered for 6 to 24 months, depending on project complexity and the Exit Strategy.
❓ “How is Development Finance repaid?”
A clear Exit Strategy will be required, which must be realistic based on the project’s complexities, and expected timescales to completion. Examples may include:
✔ Sale of the property once completed
✔ Refinancing onto a long-term mortgage
✔ Development Exit Bridging Finance
✔ Other Methods, e.g. using own funds or capital
❓ “Do I need experience in property development?”
While some lenders prefer experienced developers, we also work with lenders who finance first-time developers, providing you have a strong project team in place.