Development Loans
Property development loans UK developers rely on provide structured funding for residential, commercial and mixed-use construction projects. Whether you are building from ground up or converting an existing property, development finance ensures capital is released in stages as the project progresses.
At A2Z Bridging, we structure development finance based on loan-to-cost (LTC), loan-to-gross-development-value (LTGDV), and exit strategy. This ensures lenders are aligned with your build schedule and profitability targets.
These loans are crucial for developers who need substantial capital to bring their projects to fruition, allowing them to manage cash flow and complete construction before securing long-term financing or selling the property.
Key features of property development loans include:
- Short-term Duration: Usually lasting from a few months to 2-3 years, depending on the project’s scope.
- Interest Rates: Often higher than traditional mortgages due to the higher risk associated with property development.
- Drawdown Facility: Funds are released in stages (drawdowns) as the development progresses and certain milestones are met which is confirmed by a quantitative surveyor appointed by the bank/lender.
- Security: The property being developed usually serves as collateral, along with potentially other assets.
Repayment Structure: Typically, interest-only payments are made during the development phase, with the principal repaid upon project completion or through refinancing or sale of the property.
| Our development finance services: | |||
|---|---|---|---|
| Development Finance | From £200,000 to £250,000,000 | ||
| LTV: | LTVs up to 70% of purchase price | ||
| LTC: | LTCs (Loan-to-cost) up to 90% | ||
| LTGDV: | LTGDVs up to 70% (up to 100% development funding with additional security) | ||
| Build costs: | 100% Build costs | ||
| Terms: | Terms up to 24 months | ||
How Property Development Loans UK Work
Development finance is typically released in staged drawdowns, aligned with build milestones verified by a monitoring surveyor. Interest is usually charged only on funds drawn, helping developers manage cash flow efficiently.
Initial land purchase funding
Build cost drawdowns
Monitoring surveyor oversight
Interest serviced or rolled up
Exit via refinance or sale
Speak to a Development Finance Specialist
If you are planning a new build, conversion or large-scale refurbishment, speak to our team today. We assess your scheme quickly and match you with lenders aligned to your funding and exit strategy.
Discuss Your Development Project
Who Are Development Loans Suitable For?
- Experienced property developers
- First-time developers (with strong team)
- Residential schemes
- Commercial or mixed-use projects
- Conversion projects
- Heavy refurbishment
Key Features of Our Development Finance UK
- Loans from £200,000 to £25m+
- Up to 70% LTGDV
- Up to 90% LTC
- 100% build cost funding available
- Terms up to 24 months
- Interest rolled or serviced options
Why Choose A2Z for Property Development Loans UK?
Development finance requires precise structuring and lender matching. We work with specialist development lenders, challenger banks and private funders to secure competitive terms tailored to your scheme size, experience level and exit strategy.
Because we understand both bridging and long-term refinance, we structure your development facility with your exit in mind from day one.