Property Development Finance

Ground-up & refurb
Project types
Phased drawdown
Funds as you build
Interest roll-up
No monthly payments
What we arrange
✓Ground-up development finance
✓Heavy & light refurbishment
✓Part-built & conversion projects
✓Phased drawdown facilities
✓Development exit & bridging
✓Experienced & first-time developers
Development finance is structured in tiers with phased drawdown, and often an interest roll-up so there are no monthly payments until the scheme sells. We package the case and negotiate the terms.

Property development finance is specialist short-term lending used to fund the construction, conversion, or heavy refurbishment of residential or commercial property. It is used by developers, investors, and experienced landlords to fund projects that would not be suitable for a standard mortgage.

Soul Mortgages has extensive experience arranging development finance for projects of varying scale, from single-unit conversions and permitted development schemes to multi-unit new-build sites and mixed-use developments.

How Development Finance Works

Development finance is typically structured as a facility drawn down in stages as the build progresses, rather than released as a lump sum. This staged drawdown structure keeps interest costs down and gives lenders confidence that funds are being used appropriately.

  • Loan term: Usually 6 to 24 months, aligned to the project programme
  • Loan structure: Initial land or purchase loan plus construction costs, drawn in tranches against monitoring surveyor sign-off
  • Interest: Typically rolled up and repaid on exit, no monthly payments during the build
  • LTV / LTC: Lenders typically lend up to 65-70% of Gross Development Value (GDV) or up to 80-85% of total costs

What We Can Finance

  • New-build residential developments (single plots to multi-unit schemes)
  • Conversions, offices to residential, barns, listed buildings
  • Heavy refurbishment and structural works
  • Mixed-use developments
  • Commercial development

Our Approach

We work closely with you and your professional team (architects, quantity surveyors, planning consultants) to present the strongest possible case to lenders. We know which lenders are most active in the development space, what their appetite is for different project types, and how to structure an application to maximise your chances of approval on competitive terms.

Development finance is not regulated by the FCA.

Discuss your development finance project →

Your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.

Related services
Bridging financeCommercial mortgages