How London Development Finance Works

Your journey begins with a free, no-obligation conversation about your development project. You can submit your enquiry online, call us directly, or send us an email with your scheme summary. At this stage, we need a clear overview of what you are planning: the site location, the number and type of units, your estimated development costs, the expected gross development value, and your experience as a developer.

We will review your submission and typically arrange a call within 24 hours to discuss your project in detail. During this initial conversation, we assess the fundamental viability of the scheme, identify the most appropriate funding structure, and give you honest, direct feedback about what is achievable. If the scheme works, we move immediately to the next step. If adjustments are needed, we will tell you exactly what needs to change and why.

Once terms are agreed in principle, the formal due diligence phase begins. The lender instructs a RICS-registered valuer to prepare an independent Red Book valuation of the site (as-is) and the completed development (GDV). Simultaneously, the lender's legal team initiates their review of title, planning permissions, building regulations compliance, and any encumbrances on the property. We coordinate these parallel workstreams to minimise delays.

During this phase, we work closely with you to compile the full application pack: detailed cost plans, build programme, professional team appointments (architect, structural engineer, contractor), planning documentation, and your corporate and personal financial information. Our experience means we know exactly what each lender requires, in what format, and to what level of detail — eliminating the back-and-forth that commonly slows down applications submitted through less experienced intermediaries.

The initial drawdown typically funds the land acquisition (net of your equity contribution) and is released upon completion of the property purchase. From this point, subsequent drawdowns are released monthly in arrears, aligned with your build programme and certified by the lender's monitoring surveyor. Each drawdown request is supported by a Quantity Surveyor's certificate confirming the value of works completed since the previous drawdown.

You only pay interest on the funds that have been drawn down, not the total facility amount. This phased structure keeps your interest costs as low as possible during the early stages of the build when only a portion of the total facility has been utilised. We assist with the drawdown process throughout, ensuring requests are submitted correctly and processed promptly. Use our development finance calculator to model your projected drawdown schedule and interest costs.

The exit phase is where your development delivers its returns. The most common exit routes for London developments are open-market unit sales, block sale to a housing association or investor, or refinance onto a long-term investment mortgage if you are retaining stock as a rental portfolio. In many cases, developers use a combination of these strategies — selling a portion of units and retaining others.

As units sell, the lender releases individual properties from the charge upon receipt of the sale proceeds. When all units are sold and the loan is fully repaid, the remaining charge is removed and the facility is closed. If your sales are progressing but the original loan term is approaching expiry, we can arrange development exit finance to refinance the remaining stock at a lower cost, giving you the time to achieve optimal prices. View our case studies to see real examples of successful exits across London.