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
Share your funding amount, security, timing and repayment plan. A specialist will review the case and discuss suitable funding options, subject to lender assessment.