Property Development Finance
Arrange finance for eligible ground-up developments, conversions and major refurbishment projects, with staged funding structured around the site, build programme and intended exit.
What is development finance?
Development finance is specialist, short-term funding used to support eligible property construction, conversion and major refurbishment projects.
A facility may include an initial contribution towards the site or existing property, followed by staged releases towards approved build costs. Releases are generally controlled against progress and the lender's agreed monitoring process.
Shadowfax Funding Solutions compares suitable senior, stretched-senior and mezzanine structures, explaining leverage, equity contribution, interest, fees, drawdown controls and exit requirements before you proceed.
Types of development funding
Senior Development Finance
The primary facility secured against the development, with funding towards eligible land and build costs subject to lender limits.
Stretched-Senior Finance
A higher-leverage senior structure that may reduce the required developer contribution, subject to project viability and lender appetite.
Mezzanine Finance
Additional debt behind the senior lender that may help bridge the gap between senior funding and the developer's available equity.
Development Exit Finance
Short-term refinance for a completed or near-completed project while units are sold or longer-term finance is arranged.
What development lenders consider
Site, Planning and Value
The lender will assess title, planning, current value, proposed scheme and anticipated gross development value.
Costs, Programme and Team
Build costs, contingency, timescale, contractor, professional team and monitoring requirements all affect the funding structure.
Experience, Equity and Exit
The developer's track record, cash contribution, financial position and intended sale or refinance strategy are central to the assessment.
How a development facility may be structured
A developer is considering a scheme with a total land and build requirement of £1,500,000 and an estimated gross development value of £2,200,000.
A lender would assess the land value, cost plan, contingency, planning, developer contribution, professional team, experience and exit before confirming leverage and terms.
Important: This is an illustration, not a quotation or indication of approval. Interest, fees and build-cost funding affect the gross and net facility position.
What to weigh up before proceeding
Total Project Cost
Include land, construction, professional fees, planning obligations, finance costs, taxes, sales costs and an appropriate contingency.
Drawdown and Monitoring
Understand when build funds become available, what evidence is required and how monitoring-surveyor reports affect releases.
Exit and Sensitivity
Test the impact of delays, cost overruns, slower sales, lower values and changes to the proposed refinance route.
How Shadowfax approaches a development-finance review
Project
We establish the site, planning, scheme, costs, timescale and funding requirement.
Appraisal
We review values, margin, contingency, equity, experience and professional team.
Structure
We consider senior, stretched-senior, mezzanine and exit requirements.
Market Comparison
We compare leverage, pricing, drawdown controls, conditions and lender fit.
Completion Support
We help coordinate valuation, monitoring, legal work, due diligence and drawdown.
Compare development funding and model the project
Development Finance FAQs
What is development finance?
Development finance is short-term funding for eligible property construction, conversion or refurbishment projects. It may include funding towards the site and staged releases towards approved build costs.
How are development funds released?
Build-cost funding is commonly released in stages after monitoring surveyor inspections confirm progress and eligible expenditure, subject to the lender agreement.
How much can be borrowed?
Availability depends on the site value, purchase price, build costs, gross development value, developer contribution, experience, planning position and lender criteria.
Do I need planning permission?
Many lenders require an acceptable planning position before completion. Some may consider transactions with planning conditions or defined pre-development requirements.
Can development finance cover conversions and refurbishment?
Potentially. Providers may consider ground-up construction, commercial-to-residential conversion, heavy refurbishment and other projects, subject to the scope of works and criteria.
What is mezzanine finance?
Mezzanine finance is additional funding that may sit behind senior development debt and reduce the developer equity requirement. It normally carries a higher cost and is subject to intercreditor arrangements.
What information will lenders request?
Requirements commonly include planning documents, drawings, cost plan, programme, professional-team details, valuation information, experience, assets and liabilities, funding contribution and a clear exit strategy.
How is Shadowfax Funding Solutions paid?
Any broker fees and lender commission arrangements will be explained before you proceed.
Discuss your development project
We can help you compare senior, stretched-senior and mezzanine options, assess the likely equity requirement and understand how staged development funding may work.
Funding is subject to status, lender criteria, valuation, monitoring, due diligence and final approval. Shadowfax Funding Solutions Limited acts as a commercial finance broker, not a lender. Property may be repossessed if repayments are not maintained. Terms, security, leverage, interest, fees and drawdown arrangements vary by lender and project.