Property Development Finance 2018-02-18T21:46:47+00:00

Property Development Finance.

We are an award winning property development finance broker. Fox Davidson secure millions of pounds in property development finance each year. Our excellent relationship with lenders allow us to negotiate the best possible terms for our clients.

The terms we secure will depend on your drivers, perhaps you need low gearing and market leading rates or prefer to gear up the lending thus allowing you to develop multiple sites at any one time.

Fox Davidson specialise in property development finance. We understand the issues you will have as a developer and will work on your behalf to secure the best possible terms to ensure your development project remains as profitable as possible.

We have completed many projects over the years and work closely with well respected developers in the Bristol area. We have local knowledge of the Bristol & South West property market and have built up unrivalled lender relationships that allow us to secure finance terms that are not available elsewhere.

We have access to the whole of the market and have funded all types of developments from single unit renovations to multiple-property new build sites.

There are various levels of property development finance and allocating the right lender will depend on the type of project and the experience of the developer.

Renovation Projects

Renovation projects typically fall into 2 categories:

  • Light Refurbishment – Decoration, New Bathroom & Kitchen. Short term loan up to 6 months.No planning needed.
  • Heavy Refurbishment – Works that require planning e.g. Adding Bedrooms, Property Extensions. Loan Term up to 18 months.

The mortgage lender will be looking to take the 1st charge on the property. For light refurbishment, the applicant should have some experience of owning property but not necessarily have completed a refurbishment previously. The lender may insist that contractors are used rather than the client completing the works themselves.

Heavy refurbishment projects will require that the applicant has experience of completing previous projects.

Typical Renovation Terms:

  • 0.5% to 1.2% per month depending on the experience of the applicant, the loan to value and the type of work being undertaken
  • 75% loan to value on day 1, one tranche of funds released
  • Lenders fee typically 1.5% – 2%. No Exit Fee.
  • Survey and legal costs will apply

New Build Property Development Finance:

New build developments from the ground up can be funded using senior debt and mezzanine finance. Up to 95% of total costs is possible.

The applicant will need to be an experienced developer working with established contractors and architects.

The Terms:

  • Finance of up to 75% of Gross Development Value
  • Up to 80% of total costs including land purchase, all professional fees, stamp duty and build costs
  • Term: 3 Months to 24 Months
  • Amount: £100,000 to £25 Million plus, larger amounts by negotiation.
  • Funds released in stages, subject to sign off from QS.
  • Planning is generally needed although bridging finance terms are possible for land without planning.
  • Rates from Bank base rate plus 3.5%

The Fees:

  • Arrangement fee – 1% to 2%
  • Exit Fee – Nil to 2 % of loan amount or GDV
  • Broker Fee – Where possible we will waive our fees but we may charge up to 1%
  • Valuation Fees – Vary depending on site value. There will be ongoing survey costs as the build progresses


Typically lenders will require the following supporting documents:

  • Application Form
  • CV’s detailing development experience of the applicant
  • Asset & liability / income & expenditure statement
  • Annual accounts/tax returns – if the borrower is a going concern
  • Valuations and QS reports
  • Summary of proposed scheme including location, current and proposed site use
  • Development appraisal including detailed costings and proposed specification/finish
  • Project timeline/cash-flow forecast (allowing for prelims, construction and realistic sales window)
  • Copy of planning consent and plans including accommodation schedule
  • Comparables for sale and rent from a local agent
  • Proposed team including contractor, QS, architect etc – To include CV’s and financial accounts for these where appropriate, demonstrating ability to deliver the project.

For new developers you may find our guide to property development useful.

Next Steps…

Contact one of the team by phone or email and we can discuss your property development finance requirements in more detail.

Post Development

Some of the property developers we work with will choose to sell the properties to repay the property development finance.

If you prefer to hold on to some or all of the property then Fox Davidson is able to secure exit finance by way of developer exit finance or buy to let finance.

Self-Build Mortgages

Note that development finance for a property you or your family will live in is referred to as self-build mortgage finance and is looked at in more detail here: Self-Build Mortgages.

Read what our clients have to say about us

I would not hesitate to recommend Fox Davidson to family and friends. I am a first time buyer and therefore the house buying process was a little daunting to start with but I was kept fully up to date throughout the whole process to the point where I would receive an update email at least twice a week.

I was also extremely pleased to find that as well as assisting with the mortgage I was also being provided assistance with home and life insurance. The service I have been provided is definitely good value for money and I am very grateful to everyone at Fox Davidson who has helped me.

Miss R Power , Bristol

Having been let down by another mortgage broker (who seemed to only want to assist with a mortgage if we took other products too) I stumbled across Fox Davidson. As I am based half in London and half in Bristol, they seemed the perfect fit. Having connected with them and receiving prompt, relevant and helpful advice at the outset of our property search, I had no hesitation in coming back for the mortgage itself.

The mortgage application process was rendered painless and they bent over backwards to help with the sale. They also were extremely helpful and supportive when our first purchase collapsed, also managing to make mortgage application #2 equally as smooth. Thank you so much!

K Gibson, London

After using Fox Davidson for my first buy to let purchase I didn’t hesitate to get in touch again when the time came to buy a second property. Being an expat living and working in Thailand I had found through my own research that the options available to me would be limited, however I needn’t have worried. Fox Davidson found me a mortgage that suited my circumstances  perfectly. They have helped to make what could have been a complicated process very simple and stress free.

Great people, Great knowledge, Great service.
Thank you Fox Davidson.

Mr Christopher Hoare , Thailand
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