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Development Finance
I've packaged development deals since 2013, and the ones that get funded first time all have the same thing in common: the appraisal was honest before it reached a lender. Bring me yours and I'll tell you how it reads.
Development finance funds the site and the build on top, drawn down in stages as the work progresses. It suits ground-up construction, permitted development conversions, and refurbs too heavy for a bridge. Interest rolls into the facility, so nothing is serviced while you build. Simple enough on paper. In practice, the structure is everything.
Here is the opinion twelve years of this has given me: lenders read the contingency line before they read anything else. An appraisal with thin contingency and heroic sales values tells a funder more about the borrower than any CV, and it is the fastest way to a decline or a haircut on terms. I would rather submit honest numbers that survive the monitoring surveyor than flattering ones that fall apart at the first drawdown. So that is what we build together before anyone sees it.
I arrange senior debt, stretched senior, mezzanine top-ups and development exit facilities for first-time developers through to operators running multiple sites. And the conversation I most want to have with a developer is not about this scheme, it is about the next one: structuring so the funding for the next site is agreed while the current one is still on the tools. That is how you stop your growth moving at the speed of your last sale.
"We needed development finance for a major renovation at a point where we did not fit all of the usual lending criteria. Chris used our track record and his relationships with lenders to find a solution where the obvious routes were not available. His ability to find solutions rather than simply accept a no is exactly why we would never use another broker."
Written by Chris Adlam
Founder of Advanced Funding Solutions. Chris has arranged specialist property finance since December 2013 and personally packages and places every deal the firm takes on. Book a call with him directly.
Also see: Bridging Loans · Commercial Mortgages · BRR & Conversion Bridging · Government-Backed Finance
The deals other brokers decline are the ones we complete. Five minutes is enough to know if we can help.
Frequently asked questions
Facilities of up to 90% of total costs are available depending on the scheme, your experience and the numbers, with day-one land advances typically up to 65 to 70% of site value. All figures are indicative, for UK incorporated businesses only and subject to credit underwriting.
No, but it shapes the terms. First-time developers can be funded, particularly with a strong professional team around them. We position your experience, or your contractor's, in the way lenders want to see it.
In arrears against monitoring surveyor sign-off at each stage. We factor the drawdown schedule into your cashflow planning from the start so the build never stalls waiting for money.
A cheaper bridge that repays your development facility once the scheme is practically complete, cutting your finance costs while units sell and often releasing equity for the next site.
Question not answered? WhatsApp Chris directly or book a call, it is quicker than email.
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