Use case
Development Finance
Specialist construction finance covering land acquisition, build costs, and contingency for ground-up development or major conversion projects.
Development finance differs from refurbishment bridging in scale and structure. Drawdowns happen monthly against certified works, a Quantity Surveyor monitors progress, and the loan is repaid via unit sales or refinance to a developer-exit bridge at practical completion.
Loan-to-cost (LTC) is typically 80-90%, with LTGDV capped at 60-65% on residential. Aspen Bridging, Roma Finance, and LendInvest all offer ground-up development products on our panel.
Development finance is more expensive than bridging — rates of 0.95-1.20% per month plus monitoring fees and build cost contingency. For a value-add refurbishment that doesn't involve ground-up build, a heavy-refurbishment bridge is usually cheaper.