We arrange senior and mezzanine development finance from £5m to £100m, for residential, commercial and mixed-use schemes. Up to 72.5% of GDV, or up to 90% of cost with mezzanine, on terms of 12 to 36 months.
No credit search and no upfront fee.
Development finance is a short-term loan that funds the land purchase and build costs of a property scheme, released in stages as construction progresses. Senior lenders typically lend up to 72.5% of the gross development value, and adding a mezzanine tranche can take total funding up to 90% of cost. The loan is repaid when units are sold or the completed scheme is refinanced.
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Tell us what you need and we will search 650+ lenders for indicative terms, with no upfront fee.
We review the site, planning, build costs, GDV and your track record.
We work out the right mix of senior debt, mezzanine and equity for the scheme.
Lenders issue terms setting out loan size, pricing, fees and drawdown conditions.
The lender instructs a valuer and a monitoring surveyor and reviews the build contract and professional team.
Funds are released towards the land or site, then the build facility is drawn in stages against monitoring surveyor sign-off.
The loan is repaid from unit sales or a refinance, including development exit finance where helpful.
Once a scheme reaches or nears practical completion, a development exit loan can repay the build lender and give you time to sell units at full value rather than at a discount. Because construction risk has gone, exit finance is often priced below the build facility. It is typically arranged as a short-term bridging-style facility - see bridging loans - and can also release equity for your next site.
| Facility size | £5m to £100m |
|---|---|
| Senior leverage | Up to 72.5% of GDV |
| With mezzanine | Up to 90% of total cost |
| Term | 12 to 36 months |
| Drawdown | Staged, against monitoring surveyor reports |
| Interest | Typically rolled up and repaid at exit |
| Pricing | Priced deal by deal |
All figures are "up to" and subject to status and lender approval.
We start with your appraisal, planning documents, cost plan and developer CV, and stress test the numbers the way a credit committee will. We then structure the senior and mezzanine requirement, prepare a credit paper and approach suitable lenders. We compare indicative terms side by side, including fees, retained interest and drawdown conditions, and manage valuation, monitoring surveyor and legal workstreams through to first drawdown. Where the scheme will need exit finance or a long-term refinance, we plan that from the start.
Senior lenders typically lend up to 72.5% of GDV. With a mezzanine tranche, total funding can reach up to 90% of cost. We arrange development facilities from £5m to £100m.
A second-ranking loan that sits behind the senior lender and reduces the equity you need to put in. It is priced higher than senior debt because it carries more risk.
Typically 12 to 36 months, set to cover the build programme plus a sales period.
Usually an initial advance towards the site, then staged build drawdowns released after a monitoring surveyor confirms the work completed.
A short-term loan that repays the build lender at or near completion, giving you time to sell units at full value or refinance.
No. Growth Business Finance is a commercial finance broker and debt adviser. Finance is subject to status and lender approval.
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