Property Development Finance UK
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: Development finance funds UK property projects in stages, sized against build costs and the gross development value (GDV), from £100k to £25M+. We match your scheme to specialist development lenders whose criteria fit your deal type and experience level.
Development finance works differently from most property lending. The lender does not hand you a lump sum on day one. Funding is drawn in tranches as the build progresses, verified by a monitoring surveyor who certifies each stage before the next drawdown is released. That structure protects the lender, and it means you only pay interest on money you have actually drawn.
Lenders size the facility against two numbers: the total cost of land plus build, and the gross development value, which is what the finished scheme is expected to sell or refinance for. A typical structure funds most of the build costs and a share of the land, with the combined loan sitting at around 60 to 70% of GDV. The exact split depends on the scheme, the exit and your track record as a developer.
The lenders who back development deals are almost never the high street. They are specialist development funders, and their appetites are narrow. A lender who is strong on residential schemes in the South East may have no appetite for mixed-use in the North, and a lender who will fund a first-time developer at 60% GDV will not touch the same developer at 70%. We know where those appetites sit.
We package the appraisal, cost plan and exit, then take the scheme to the lenders whose criteria actually fit it. Development finance is credit-assessed on the scheme itself, not just the borrower, and lenders will instruct their own QS and valuer regardless of what we present. As a broker we do not lend or decide the outcome; what we do is make sure the right lenders see the deal in the right format.
Key Benefits
- Stage drawdowns released against QS-certified build progress, so you are not paying interest on a single advance from day one
- Lenders typically fund to around 60-70% of GDV, with the ceiling set by your exit clarity and your track record
- First-time developers get funded, usually at lower loan-to-GDV and with a monitoring surveyor in place, rather than declined outright
- Ground-up builds, permitted-development conversions and heavy refurbishment for sale or refinance all have active lenders on our panel
Frequently Asked Questions
How much development finance can I get?
Most lenders go to around 60-70% of the gross development value, covering the majority of build costs and a share of the land. The exact numbers depend on the scheme appraisal, your exit and your experience. Higher GDV percentages exist but come with tighter criteria and a higher cost of funds. No broker can promise a figure; the lender credit-assesses the scheme and instructs its own valuer.
Do I need development experience?
Experience opens up better terms and higher LTV, but it does not gate the market. First-time developers have options, typically at lower loan-to-GDV with a monitoring surveyor appointed by the lender to verify each drawdown. We match you to lenders whose criteria fit your track record, rather than sending you to lenders who decline on experience alone.
What is GDV and why does it matter?
Gross development value is the estimated end value of the completed project, usually based on a professional appraisal or agreed sales prices. It is the primary metric development lenders use to size the facility. A higher GDV relative to your costs improves your LTV position and your borrowing power; a weaker margin compresses both.
Construction & Development Finance calculator
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Est. interest
£68,850
Arrangement fee
£15,000
Total finance cost
£83,850
Total to repay
£833,850
Assumes interest on roughly 60% average drawn balance; the real cost depends on the drawdown schedule and lender.
Request a full quote from a brokerIllustrative estimate only, not a quote or financial advice. A broker will confirm exact terms based on your circumstances and lender appetite.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.