Development Finance London
London developers deal with high land costs, complex planning and long build programmes, so the right finance structure matters as much as the headline rate. BestQuote Commercial Finance arranges development finance for London developers and compares lenders on loan size, cost and drawdown terms.
What is Development Finance?
Development finance is funding released in stages during a construction or heavy refurbishment project, with the loan based on cost and expected end value. A monitoring surveyor typically checks progress before funds are released. Lenders look at planning permission, the budget, the team and the exit, and on larger schemes they may also ask about pre-sales or the developer track record.
Typical London projects include converting offices, shops and houses into flats, building on small infill sites, and refurbishing buildings for sale or rent. Planning obligations such as the Community Infrastructure Levy add to costs and are something lenders will want included in the budget. Sale values can change a lot from one street to the next, so lenders rely on close comparable sales when they set the loan against the end value.
Development Finance in London — Common Uses
- ✓Ground-up new build residential developments in London and the surrounding area
- ✓Commercial-to-residential conversions under permitted development rights
- ✓Light to heavy refurbishments of properties across London
- ✓HMO conversions and student accommodation projects
- ✓Mixed-use developments combining residential and commercial elements
- ✓Land acquisition with planning permission prior to commencing construction
Key Terms
- ✓Loan to GDV: Up to 65% of projected completed value
- ✓Loan to Cost: Up to 85–90% of total development costs
- ✓Minimum loan: £500,000 for specialist development finance
- ✓Interest rolled up during build — no monthly payments
- ✓Arrangement fees typically 1–2% of the facility
Why Choose BestQuote for Development Finance in London?
BestQuote Commercial Finance is a specialist broker with access to over 100 lenders across the UK, several of whom specialise specifically in London's more complex and varied property market.
- ✓Whole of market access — 100+ specialist lenders
- ✓We don't charge you a fee for our service
- ✓Response within 24 hours of your initial enquiry
- ✓Specialist in complex cases and unusual property types
- ✓FCA authorised and regulated
- ✓Experience placing cases relevant to local development and planning activity in London and the City, Canary Wharf, and outer boroughs across Greater London
Frequently Asked Questions
Most lenders require at least outline planning permission before they will lend. Some will lend on sites with permitted development rights in place. We can advise on what is achievable at your current planning stage in London. Planning applications in London are decided by the relevant borough, and lenders will want to see the decision notice, any section 106 and Community Infrastructure Levy obligations, and how they are costed.
First-time developers can access development finance, though lenders may require a more experienced project manager or main contractor. Experienced developers typically access better rates and higher LTV. We work with developers at all experience levels.
Funds are drawn down in tranches as the build progresses, verified by an independent monitoring surveyor appointed by the lender. This protects both the lender and the developer and ensures funds are available when needed throughout the project.
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Ready to discuss your development finance requirements in London? Contact BestQuote Commercial Finance today for free, no-obligation advice from our specialist team. We respond to all enquiries within 24 hours.
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