Development finance provides property developers and investors with the essential funding needed to complete residential, commercial, or mixed-use projects. At Million Plus Private Finance, we specialise in arranging bespoke finance solutions to ensure your development plans become a reality, no matter the scale or complexity.
What Is Development Finance?
Development finance is a tailored funding solution designed to support the construction, renovation, or refurbishment of properties. Whether you’re planning a new build, completing an unfinished project, or undertaking extensive renovations, development finance provides the capital required to bring your vision to life.
This type of finance caters to both residential and commercial developments, including:
- New Builds: Houses, flats, and residential complexes.
- Commercial Projects: Offices, retail units, industrial facilities, and hospitality venues.
- Mixed-Use Developments: Projects combining residential and commercial spaces.
How Does Development Finance Work?
Unlike traditional loans, development finance is typically drawn down in phases. This phased release aligns with the progress of your project, ensuring funds are available as needed. Here’s how it generally works:
- Land Purchase: Developers usually provide the initial capital for acquiring the land.
- Construction Costs: The lender releases funds incrementally to cover building costs, based on pre-agreed milestones.
- Final Stage: The remaining funds are made available upon project completion or when all agreed criteria are met.
How Much Can You Borrow?
The amount you can borrow is determined by the Gross Development Value (GDV) of the project, which is the expected market value of the property upon completion. Typical lending terms vary based on project specifics and the lender’s risk assessment. Here are some key points:
Up to 75% of land and build costs
Lenders typically offer up to 75% of the total cost of acquiring the land and completing the construction. This ensures developers contribute some equity upfront, aligning with industry norms.
Approximately 60% of GDV
Lenders often limit borrowing to around 60% of the project’s final market value. This approach ensures the project remains financially viable and reduces lender risk.
100% financing through Joint Venture (JV) agreements
In certain cases, lenders or equity partners may provide full funding for land and build costs. These arrangements are more common when the developer brings substantial expertise to the table, with profits and risks shared between the parties.
Understanding these figures is crucial when planning your development project. Our team at Million Plus Private Finance works closely with you to identify the best financing structure for your needs.
Standard Loan Terms
Development loans are generally short-term, with terms ranging from 6 to 24 months, depending on the project’s scope. These loans are typically structured on an interest-only basis, with interest rolled into the loan, so no monthly payments are required during the term. The loan is repaid through an agreed exit strategy, such as property sales or refinancing.

Eligibility for Development Finance
Lenders assess applications based on various factors, including:
- Experience: Experienced developers are more likely to secure funding, but first-time developers can still qualify with a solid plan and professional team in place.
- Project Viability: Providing detailed cost estimates, profit projections, and a schedule of works increases your chances of approval.
- Strong Team: Collaborating with architects, contractors, and project managers can demonstrate the project’s feasibility to lenders.
Development Finance Rates
Interest rates for development finance are influenced by the project’s scope, the borrower’s experience, and the perceived risk. Rates are typically negotiable and accompanied by arrangement and exit fees. At Million Plus Private Finance, we work to secure the most competitive rates for your project.
How Million Plus Private Finance Can Help
Our expertise lies in simplifying the complexities of development finance. Here’s what we offer:
- Extensive Lender Network: Access to specialist property development lenders offering tailored solutions.
- End-to-End Support: From preparing applications to liaising with lenders, we handle the entire process.
- Custom Solutions: We craft bespoke financing plans to meet your specific project requirements.
- Market Expertise: With years of experience, we know how to present your case effectively to maximise approval chances.
Why Choose Million Plus Private Finance?
- Specialist Knowledge: Decades of experience in property development finance, catering to both new and seasoned developers.
- Tailored Advice: Solutions customised to your project’s unique challenges and goals.
- Comprehensive Support: Guidance throughout the process, ensuring smooth and timely funding.
- Strong Relationships: Partnerships with leading lenders enable us to secure competitive terms and flexible options.
Start Your Development Journey Today
Whether you’re planning a residential build, commercial development, or a mixed-use project, Million Plus Private Finance is here to help. Our tailored approach and market expertise ensure your development finance needs are met with efficiency and confidence. Contact us today to discuss your project and explore your financing options.