Development Finance

Development finance is a type of funding used to finance the construction and conversion of residential and commercial properties.

Typically, the loan is divided into 2 parts; the initial loan to fund the site acquisition often referred to as the ‘land loan’ and the 2nd part the ‘build loan’ which funds the construction costs. The build loan is normally released in stages once the build commences according to your build schedule.

Development finance differs from bridging as normally the works will require monitoring by a quantity or monitoring surveyor appointed by the lender. They will want to certify the works have been completed and then release funds so you are able to pay your contractor or your suppliers. We are also normally basing the lending against the end value normally referred to as the ‘GDV’ (Gross Development Value).


  • We have access to a variety of specialist lenders not just the high street banks which enables us to structure bespoke solutions tailored to you and your needs. We can also achieve higher leverage than is typically available on the high street so do not be put off just because you do not meet the main high street banks criteria.
  • Lenders like experienced developers and normally like to see the client has completed 2 or more similar schemes. However, SPF still has options for first time developers as you are likely to complete a smaller project first and gradually build up to bigger schemes.
  • Interest rates are dictated by risk however each loan we structure is bespoke to your circumstances so it’s best to get in touch with us, so we can provide you with an accurate quotation.
  • We can fund both commercial and residential developments.
  • We are also able to arrange funding against a land purchase, if you intend to apply for planning permission yourself. Once planning permission is obtained we can then release funds for the development.