Ground Up Development Finance
Ground up development finance funds the purchase of a site with detailed planning and the construction that follows, released as a land advance on day one and monthly build drawdowns in arrears against a monitoring surveyor's valuation. Senior debt is capped at the lower of around 70% of gross development value and 85%–90% of total cost, priced from roughly 7% to 11% per annum with a 1.5%–2% arrangement fee and a 1% exit fee, over terms of 12 to 30 months. The decision rests on three things: detailed planning in place, a build budget a surveyor will stand behind, and profit on cost near 20% or better.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Loan to GDV
- Up to 70% senior; 75%+ with mezzanine
- Loan to cost
- Up to 85% – 90% including land and build
- Land advance
- Typically 50% – 65% of site value on day one
- Rate
- ≈ 7% – 11% p.a. on the drawn balance
- Arrangement fee
- 1.5% – 2%; exit fee typically 1% of loan or GDV
- Term
- 12 – 30 months
- Drawdowns
- Monthly in arrears against monitoring surveyor sign-off
- Profit on cost
- ≈ 20% minimum for most senior lenders
- Exit
- Unit sales, or development exit finance while sales complete
Worked example — six houses, £2.4m GDV
- Site purchase with detailed planning
- £520,000
- Build cost
- £1,180,000
- Fees and contingency
- £160,000
- Total cost
- £1,860,000
- Senior facility (lower of 70% GDV / 88% cost)
- £1,636,000
- Developer equity
- £224,000
- Finance cost over 18 months
- ≈ £158,000
- Profit on cost
- ≈ 19%
Figures are typical UK market ranges as at 2026 and are indicative only — your terms depend on the asset, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- Detailed planning consent in place, or a site subject to it with the consent expected pre-drawdown
- A main contractor or a costed build programme a monitoring surveyor can validate
- Prior completions of comparable size, or a contractor and project manager who bring that record
- Equity of at least 10%–15% of total cost, injected before or alongside first drawdown
- A UK limited company or SPV borrower with personal guarantees from directors
This is the wrong product if
- Sites with outline consent only — that is a land or planning gain facility, not development finance
- First-time developers attempting multi-unit schemes without a credentialled team
- Schemes showing under 15% profit on cost with no contingency
- Self-build of a home you intend to occupy, which is a separate regulated product
What actually happens, and when
- Week 1
Appraisal reviewed
We stress the GDV, build cost and programme before approaching lenders, because the appraisal is what gets the case declined or priced well.
- Week 1–2
Terms and credit-backing
Heads of terms from lenders whose appetite genuinely covers your location, unit type and experience level.
- Week 2–5
Valuation and monitoring surveyor
Red book valuation plus an initial monitoring surveyor report on the budget and programme.
- Week 5–9
Legals and first drawdown
Land advance released at completion; build drawdowns follow monthly in arrears.
Frequently asked
Request indicative terms
Four details are all a lender needs to price a case: how much, what secures it, when you need it and how it is repaid. Send those and we come back with realistic terms — or tell you plainly that the case will not place.
Request indicative terms
Tell us the four things every lender asks first. We come back with realistic terms, usually the same working day.