I have been arranging property development finance for clients for over 10 years. I have worked on
small refurbs and PD schemes through to ground up new build sites of over 20 units. I am often
asked ‘who is your go to lender?’ or ‘which lender is the best to work with for property development

One thing I have learned is that the best development finance lender is not necessarily the cheapest
option. As a developer there are more considerations other than rate that you should be

When I recommend a development lender to clients the most important factors are, relationship,
corporate structure, funding source and flexibility.




  • Relationship – Having a good relationship with the individuals at the lender is so important. If
    I have a good relationship with the funder, then it means I trust that person, have met that
    person and have completed several deals with that person. This means that I can help to
    control the situation when a valuation comes in lower or when we need an urgent
    completion date.


  • Corporate Structure – I want a funder who can make a decision within 48 hours. I don’t want
    my client to be waiting for a decision to take a week or two weeks due to corporate
    structures that need sign off from multiple managers or underwriters. This is why small
    teams or case managers with mandates to make decisions are so important.


  • Funding Source – How your development finance lender is funded is very important. Are
    they well-funded, if so who by, do they have their own funds, do they have to crowd source
    at point of draw down? Ove the years I have worked with banks, family offices and crowd
    platforms. The best lenders have their own funds ready to lend. Unfortunately, I have found
    that whilst crowd funding is a good model it is subject to achieving the funding from
    individuals on a platform which is time consuming and uncertain.


  • Flexibility – The final criteria for a good development finance lender is flexibility. I want
    flexibility or a ‘can do’ attitude from a lender and their solicitors. I want a lender to want to
    find a way to make the deal work rather than on that puts up barriers.


A lender that can be flexible in their lending will build a relationship which will last more
than one development. Scenarios where flexibility is key include:

  • Extension of the facility term (rather than charging the default rate)
  • Willingness to use indemnity insurances or to ‘take a view’ to overcome small snags
    with planning or legals.
  • Speed – the ability to work faster when urgency is needed.
  • An option to bend loan to value limits due to slight down valuations because the
    scheme still works.

All these factors are important considerations when deciding on the best development finance
lender for any given situation.

I also need to pay attention to hard facts such as, loan amount, location, development type,
developers experience and net assets amongst other factors.

Development finance is more than just rate. Getting a blend of all the aforementioned factors as
well as rate is important and that the role I play. I work with developers to secure funding with
trusted funders that I have relationships with and that I would use to fund my schemes.

To discuss property development finance for everything from refurbs to ground up new build
schemes do get in touch.

You can reach me on email: Wesley@foxdavidson.co.uk