Development Finance

Development finance is a short-term, specialized funding option used specifically for the construction or heavy renovation of property.

Unlike a standard mortgage, where the lender gives you all the money at once to buy a finished building, development finance is released in stages as the building work progresses. It is designed to take a project from a plot of land (or a shell) to a completed, saleable asset.

This is known as the "Drawdown" Process.

The 'Drawdown' process can be structure as follows:

• Initial Advance: A portion of the loan is provided to help purchase the land or the existing building.

• Staged Payments: As your builders reach specific milestones (e.g., foundations laid, roof on, "wind and watertight"), a surveyor visits the site. Once they confirm the work is done, the lender releases the next "tranche" of cash.

• The Exit: Once the project is finished, the loan is repaid—usually by selling the new properties or by switching to a long-term "term" mortgage.