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Property Development Finance2018-11-11T10:52:30+00:00

Property Development Finance

Fox Davidson fund all property asset classes (residential and commercial) in the UK. We secure development finance from £500,000 and typically up to £100 Million.

Using JV partners we can fund up to 100% of all costs including purchase, build and professional fees.

How Does Development Finance Work?

Development finance works with a lender making an initial loan based on the purchase price. The lender will subsequently fund 100% of the cost of works. This ensures that the development finance lender can ensure the works are completed and the development is finished, ready to be sold or refinanced.

Types of Development Finance

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.

Light & Heavy Refurbishment Finance.

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.

Heavy refurbishment projects will require that the applicant has experience of completing previous projects. The lender may also insist that a building contractor is used to carry out the works

New Build Property Development Finance.

New build developments from the ground up can be funded using senior debt and mezzanine finance. Up to 90% of total costs is possible.

The applicant will need to be an experienced developer working with an established design and build team

What Paperwork  Is Required For Development Finance?

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.

Development Finance Lenders


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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