FINANCE OPTIONS

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Q: What borrowing amounts are typical for first-time developers?

For many SME property development schemes, borrowing amounts are commonly considered in the range of £100,000 to £5,000,000. What you can access will depend on factors such as loan-to-cost, the development type and condition, stage of works, strength of the appraisal, planning status, and the proposed repayment route.

Q: How long does a lender credit decision usually take?

Timescales vary with complexity and completeness of the underwriting pack. A realistic range often quoted is 2 to 10 weeks for an underwriting decision, and for many schemes funds become available after credit approval and completion of legal or security steps, commonly allowing a further 2 to 6 weeks.

Q: What interest rates might be expected for senior development finance?

Typical pricing for SME development facilities is around 9% to 16% per annum, with lender-specific differences based on risk, LTV or loan-to-cost, development type, borrower experience, and whether the rate is fixed or variable. Some facilities also reflect scheme-specific risk factors through margins over benchmark rates.

Q: What types of property development finance can first-time developers access?

Common options include a Refurb & conversion development loan, a Ground-up build development loan, and a Joint-venture style developer facility. Each has its own typical amounts and term ranges, and lenders assess deliverability, milestone drawdowns, planning or technical assumptions, and the strength of exit strategy and security.

Property Development Finance for First-Time Developers is typically arranged as property development finance (senior development loan), a specialist facility used to fund acquisition, planning or works preparation, and construction or refurbishment on a defined site. For first-time developers, it is usually structured around project milestones and a repayment plan linked to development progress and the eventual sale or refinance, rather than relying only on an existing property portfolio. Businesses use it to unlock cash flow before receipts arrive, support structured drawdowns against progress, and use secured routes that align repayment with project completion.

Property Development Finance

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How a senior development loan helps

When you are bringing your first scheme to market, the underwriting focus matters. Senior development finance is underwritten on deliverability, then released through milestone controls, with repayment typically linked to completion and sale or refinance. The information below reflects typical pricing and timing you may see for SME development finance property development schemes.

Project-led underwriting

Milestone draw funding

Secured completion repayment

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Development finance options to consider

Refurb & conversion development loan

Refurb & conversion development loan funding suits first-time developers taking on a defined refurbishment or conversion scope. Typical amounts are £100,000 to £1,500,000, often with terms around 6 to 24 months, depending on milestone delivery and revised forecasts if works slip.

Refurb & conversion development loan

For refurb & conversion, lenders typically want equity contribution evidence, a detailed project plan and costings, and a clear exit strategy, usually sale or refinance. Decision times are commonly 2 to 6 weeks once you have provided full documentation and a workable development appraisal. Pricing is often fixed or variable at a margin over a reference rate, with a typical range of 9% to 15% per annum, reflecting project risk and loan-to-value.

Ground-up build development loan

Ground-up build development loan facilities fund new build or major redevelopment where there may be limited track record. Typical amounts are £150,000 to £3,000,000, with terms often 12 to 36 months and longer where the programme extends, subject to lender controls.

Ground-up build development loan

With ground-up build, lenders commonly assess feasibility, planning or progress towards permissions, contractor capability and a contingency within the cost plan. Because construction and planning assumptions require deeper review, credit decisions are often 4 to 10 weeks. Interest rates are typically priced as a benchmark rate plus a risk margin, commonly 10% to 16% per annum, with higher pricing where technical or planning uncertainty is greater.

Joint-venture style developer facility

Joint-venture style developer facilities can help first-time developers deliver a scheme where the structure supports a collaboration with a landowner, investor or construction partner. Typical amounts are £200,000 to £5,000,000, with terms often 9 to 30 months.

Joint-venture style developer facility

In a joint venture, lenders look closely at the JV agreement and legal protections, along with the cash flow waterfall and the partner’s ability. Decision times are typically 5 to 12 weeks due to additional legal and structural review. Interest rates are often around 9% to 15.5% per annum, depending on risk, LTV and the strength of JV protections. Facility funding is commonly linked to both development milestones and JV cash contributions.

Typical Funding Journeys on Funding Agent

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Share your project details

Send your site and scheme basics, including whether it is refurb or conversion, ground-up build, or a JV style structure. Include the target end value, purchase price, the deposit or equity you can provide, and your intended exit, whether sale or refinance.

We build a lender-ready pack

We help organise the development appraisal, cost plan, programme and milestones, and contractor information or quotes. You will also receive support assembling documents typically needed for underwriting checks, including feasibility, planning status evidence where relevant, and security details.

Apply and review terms

We submit to suitable lenders, help you compare offers across draw mechanics, fees, pricing and security or covenants, and support you through progressing legal and security paperwork. The aim is to move from eligibility screening to credit decision with fewer missing elements.