Ground-Up Development Finance
The Right Funding for Your Site, Build and Development Project.
Suitable for Property Developers Building Houses, Flats & Multi-Unit Schemes.
Specialist funding for residential developments, from land acquisition through construction to completion. We compare lenders, negotiate the loan structure and personally manage your finance from enquiry through to completion.
The Right Development Finance
We match your project to suitable lenders from our network of 130+ specialists, considering site value, build costs, experience and exit strategy.
Clear Comparison of Options
We compare funding levels, interest, fees and drawdown arrangements, helping you understand the total costs and cash required throughout the build.
Managed Through to Completion
Your dedicated broker negotiates with lenders, coordinates professionals and manages the finance process through to completion.
Ground-Up Development Funding Capabilities
We work with specialist development lenders offering flexible finance for new-build schemes, with facilities structured around the site, construction costs and projected end value.
130+
Specialist Lenders
Up to 75%
Loan to GDV
100%
of build costs
Staged Funding
Drawdowns as Construction Progresses
Indicative funding capabilities only. Loan amounts depend on GDV, total project costs, available equity, developer experience and lender criteria. Maximum funding levels may not be achievable together.
What Does Ground-Up Development Finance Look Like?
Development loans are structured around the site, construction programme, projected gross development value and repayment strategy. We explain the key figures before you commit.
Borrowing & Equity
Funding depends on the site’s value, total project costs and projected GDV. We assess your day-one advance, equity contribution and remaining cash requirements, not just the headline loan amount..
Loan term
The term should cover construction, certification, marketing and repayment. We consider the proposed programme, likely delays and the time needed to sell or refinance the completed properties.
Interest
Interest is commonly charged on funds drawn and rolled into the facility, although structures vary. We compare the interest reserve and implications for total borrowing costs and cash flow.
Fees & total cost
We assess lender arrangement fees, interest, valuation, monitoring surveyor costs, legal fees, broker fees and any exit charges. Our comparisons show the overall costs, not simply the headline rate.
Drawdowns & Monitoring
Build funds are usually released in stages following progress inspections by an independent monitoring surveyor. We assess drawdown timing, conditions and whether the structure supports your contractor payment schedule.
Repayment
Development loans are usually repaid through property sales or suitable longer-term refinancing. We assess projected sales proceeds, realistic timescales and whether the planned exit supports the borrowing.
All finance is subject to lender assessment, valuation, legal checks and project viability. Funding levels, drawdowns and completion are not guaranteed.
What to Consider Before Funding Your Development
A development facility needs to work throughout the project, not just on the day the loan completes. These four areas can make a significant difference.
Planning & Project Viability
Lenders will review planning permission, site conditions, development appraisals, contractor arrangements and the overall viability of the scheme.
Your Equity Contribution
Understand the cash required for acquisition, professional fees, construction costs and contingencies before further lender funding becomes available.
Build Costs & Drawdowns
Check how construction funds are released and whether your available cash can cover contractor payments between drawdowns..
Your Exit Strategy
Allow realistic time for construction, sales and refinancing, including contingency for delays or a lower-than-expected end value.
How We Help Get Your Development Funding in Place
You’ll deal directly with an experienced development finance broker who takes ownership of the process, negotiates with lenders and works alongside your professional team..
1. Assess Your Development
We review the site, planning, construction budget, projected GDV, experience and exit strategy, identifying the funding requirements and potential obstacles.
2. Find and Compare Lenders
We shortlist suitable lenders, prepare the funding proposal, negotiate indicative terms and provide a like-for-like comparison of costs, funding levels and conditions.
3. Package and progress the case
We coordinate the application, valuation, monitoring surveyor requirements and legal process, working with lenders and your professional team to resolve queries.
4. Manage through to completion
We track outstanding requirements, negotiate where necessary and coordinate the process towards the initial loan completion, with continued support on lender and drawdown matters throughout the project.
Completion is subject to lender approval, satisfactory valuation, due diligence and legal work. Funding is not guaranteed.
Your Ground-Up Development Finance Questions Answered
What is ground-up development finance?
Ground-up development finance is specialist property funding used to acquire land and construct new buildings, such as houses or blocks of flats. Lenders typically release part of the finance at the outset, with further drawdowns as construction progresses. The loan is normally repaid when the completed properties are sold or refinanced.
How much can I borrow against the GDV?
Some lenders offer facilities up to 75% of gross development value, subject to project viability, borrower experience and other lending limits. Loan-to-cost restrictions also apply, so the amount available may be lower. We assess the likely funding against the full development appraisal.
Can I borrow 100% of the construction costs?
Usually, yes. Lenders will fund up to 100% of eligible build costs within their overall loan limits. This doesn’t necessarily mean the entire development can be financed without equity. We calculate the funds required for the site purchase, fees and any shortfall.
How are construction funds released?
Development lenders generally release construction funds in stages, following an independent monitoring surveyor’s review of completed works and costs. We compare drawdown arrangements to help ensure the loan structure is practical for your construction programme and cash flow.
Do I need previous property development experience?
Experience can influence lender choice, borrowing levels and pricing. Some lenders will consider first-time developers where the project is viable and the professional and construction team is suitably experienced. We assess your circumstances and approach lenders whose criteria fit your proposal.
Peace of Mind With A Trusted and Regulated Broker
Xcel Finance is Directly Authorised by the Financial Conduct Authority (FCA) and a member of the National Association of Commercial Finance Brokers (NACFB), providing added reassurance that we work to high professional standards and are committed to delivering excellent customer outcomes.
Jamie Lloyd | Specialist Finance Broker
Jamie specialises in Development Finance, using his experience and lender relationships to find practical solutions, particularly for complex projects.
You’ll deal directly with him from first enquiry through to completion. He takes ownership, working alongside you and your professional team to solve problems, provide clear advice and keep things on track.
An experienced specialist in your corner from project concept to completion.
Get a Ground-Up Development Finance Quote Here
Tell us about your project requirements, and we’ll be in touch to discuss your options.