Property development finance, also known as housing development finance or
property finance, is a secured business loan used for property projects, renovations,
conversions, or purchasing undeveloped land to build a property. It’s a short-to-
medium-term loan based on the projected gross value of the property or land. The
loan amount depends on the projected gross value of the asset once the project is
complete. The loan is released in stages as the development progresses, and
interest can be rolled or retained and paid only on the funds that have been
released. Loan terms typically range from three to 24 months, with a pre-agreed
grace period for the property to be sold or refinanced after the project is completed.
Development finance includes ground-up development, heavy development, and
light to medium refurbishment. It is primarily used for residential, commercial, and
semi-commercial projects.
The amount you can borrow with development finance depends on the projected
GDV of the property or land once the project is completed. For example, if the
projected sale value of new homes is £9 million, you could borrow up to £5,400,000,
which is 60% of the projected GDV.
When seeking development finance, it’s essential to consider the associated costs,
such as lender arrangement fees, professional fees, interest, broker fees, valuation
fees, monitoring fees, exit fees, and non-utilization fees.
Development finance offers quick and flexible funding with rolled or retained interest
but comes with higher costs and additional fees. We provide funds within weeks and
take our time to understand your case, not just your numbers.
We provide funds within weeks of receiving your application, not months. Our unique
lending criteria enable us to approve loans that many other lenders would decline.
Our business loans are customised to fit your specific needs. We specialise in
offering development finance solutions for property developers and investors,
ranging from £200k to £5 million (loans greater than this are considered on referral).
Applying for development finance with Inflow is simple. Complete the Contact Us
form and one of our property finance team members will contact you promptly.