Development finance, matched to the right construction-lending specialist
We forward your details to development finance specialists across the UK and US who fund ground-up construction, conversion, and refurbishment projects. Tranches sized to the build schedule, exits structured around your sale or refinance plan.
- Introduction in 48 hours
- Free for borrowers
- No credit checks from us
At a glance
- Facility size
- £500k - £40M / $600k - $50M
- Typical term
- 12 - 36 months
- Security
- First charge over the site + corporate / personal guarantees
- Drawdown
- Tranched against milestones (monitor signs off)
- Funding speed
- First tranche in 4 - 10 weeks
Development finance: Funds the construction phase of a development - drawn in tranches against build milestones.
What is development finance?
Development finance is short-to-medium-term lending that funds a property construction or major refurbishment project. The lender commits to a total facility size up-front but releases the money in tranches as the build hits agreed milestones - groundworks, frame, watertight, fit-out, completion - each draw signed off by a monitoring surveyor. Interest is usually rolled up so the developer has no monthly debt service during the build, and the loan is repaid in full on sale or refinance at practical completion.
Common uses, and who it's right for
Common uses
- Ground-up residential development
- Multi-unit residential schemes (block of flats, townhouses)
- Commercial-to-residential conversions
- Mixed-use and student accommodation
- Light commercial refurbishment ahead of sale or refinance
- Hotel and serviced-apartment construction
Best for
- Experienced developers with completed schemes on record
- Projects with planning consent already secured
- Clear exit route - GDV-supported sale or pre-arranged refinance
- Equity contribution of typically 25-40% of total project cost
Not the right fit
- Pre-planning sites (you'll need a separate land/strategic land facility first)
- Developers with no track record on similar schemes
- Projects without a credible exit route at practical completion
Where it usually goes wrong - and how Tenttfinance fixes it
Four typical pain points borrowers hit when shopping for development finance - and the way our introducer model is built to remove them.
Where it usually breaks
- Brokers shop deals to generalist lenders who don't understand construction risk
- Promised LTGDV / LTC numbers shrink during underwriting once the lender sees the real costs
- Slow monitor draws stall the build and rack up extension costs
- Surprise costs at exit - exit fees, dilapidation holdbacks, surveyor charges you weren't expecting
How Tenttfinance fixes it
- We forward your details to specialists who underwrite development on a daily basis - so the first conversation is at terms, not eligibility
- We pre-match on lender appetite for your specific scheme size, location, and asset type - so the headline number stands up
- We match you to lenders whose monitoring + draw cycle is built for pace, not bureaucracy
- We match to lenders who quote a clear total cost up-front. The partner will walk through every line before you commit
How to get matched to a development finance specialist
Three steps. Most introductions go out within 48 hours of a complete request.
Tell us about your business
Share the basics - business type, the development finance amount you need, use of funds, and timeline. Three minutes. No credit check.
We match and forward your details
We identify the development finance specialist most likely to fund your situation and forward your details directly to them - matched to your sector, size, and market (UK or US).
The lender contacts you
The specialist reaches out to you directly with their terms, documentation, and next steps. You take the conversation from there.
Development finance - frequently asked questions
The questions we hear most from borrowers exploring development finance. If yours isn't covered, start an application and we'll route you to a specialist who can answer it directly.
What's the difference between LTC and LTGDV?
Loan-to-cost (LTC) is the facility as a percentage of the total build cost - typically 70-85%. Loan-to-GDV (gross development value) is the facility as a percentage of the projected sale value of the finished scheme - typically 60-70%. Lenders use both to size the facility, and the lower of the two caps the loan.
Do I need planning consent to apply?
For most development finance facilities, yes - lenders want detailed consent in place before committing. A small number of specialist lenders will look at pre-planning land deals, but the terms (LTV, rate, structure) will be very different. We'll match you to the right type of facility for the stage you're at.
How are draws structured?
Funds are released in stages against build milestones - typically groundworks, frame up to plate, watertight (slate on roof), first fix, second fix, and practical completion. Each draw is preceded by a monitoring surveyor visit to verify progress on site, after which the lender releases the next tranche.
What happens if the build runs over schedule?
Most facilities include an extension option (usually 3-6 months) for an additional fee. If you're running materially behind, the lender will want to understand why and may ask for revised cost forecasts. Honest communication with the lender during the build is the single best predictor of a smooth extension - which is part of why specialist development lenders work better than generalists here.
Can development finance fund the land purchase too?
Yes - many development facilities combine land acquisition and build into a single line. The land tranche is released at completion of purchase; build tranches follow on schedule. This is often more efficient than two separate facilities, and we'll match to lenders set up for combined structures where they fit your situation.
Related loan types
Not sure if this is the right fit? Here are other loan types we cover that often come up in the same conversations.
Get matched to the right development finance specialist
Tell us what you need. We'll forward your details to the specialist most likely to fund - and they'll reach out to you directly.