Services - Property Development Finance

Property Development Finance

Thinking about your next big development project? At Hilton Smythe, we can support a range of funding requirements – from pre-planning finance, bridging finance, through to commercial and residential development finance.

What is Property Development Finance?

Development finance is a short-term funding option, typically spanning 6-24 months, that is designed to assist with purchase and build costs. The term of the loan will allow time for the property to be purchase, developed and then sold or refinanced to repay the debt.

A development loan can be repaid in several ways:

The full amount can be repaid using sale proceeds from the finished property.
It can be refinanced on a long-term loan if the borrower wants to keep the finished development for themselves or to rent out.
It can be refinanced using a Development Exit Bridging Loan, allowing the borrower to repay the original loan facility before all the units are sold.

How much funding can you access?

There are several factors that shape access to funding:

Valuation: A professional report assesses three crucial numbers:

Current Value: Land value with planning permission or existing property value before refurbishment.
Build Costs: Estimated expenses for construction or renovation.
Gross Development Value (GDV): Projected market value of the completed property(ies).

Lender Parameters: Each lender has unique criteria for maximum loan amounts. Unlike traditional mortgage providers and traditional banking based solutions, the lenders we work with base their lending criteria on Loan to Cost (LTC) and Loan to Gross Development Value (GDV) which gives them more options to work with a customer.

Usually funding extends up to a maximum of 75% Loan to Gross Development Value (GDV) or 90% Loan to Cost (LTC) which can be increased to 100% with additional security. Repayments can be on a varied schedule but can be extended up to a 24 month term.

Benefits of seeking development finance with Hilton Smythe:

We offer our development clients:

Finance for new build, conversion or refurbishment developments
Access to market-leading rates
Funding solutions from high street and private banks, as well as specialist lenders
Flexible finance terms up to 24 months
Funding generally up to a maximum of 70% Loan to Gross Development Value (GDV)

How does Property Development Finance work?

Whether you are an experienced developer with years of experience or are looking to complete your first scheme, we have access to a huge range of specialist lenders who understand and concentrate on the building development sector.

Our experience of working with these lenders has allowed us to build up trusted working relationships with them and allow us to help source the funding to suit your specific requirements.

Unlike traditional mortgage providers and traditional banking based solutions, lenders we work with base their lending criteria on both Loan to Cost (LTC) and Loan to Gross Development Value (GDV) which gives them more options to work with a customer. Find our more>>

Usually the funding is up to a maximum of 75% Loan to Gross Development Value (GDV) or 90% Loan to Cost (LTC) which can be increased to 100% with additional security. Repayments can be on a varied schedule but can be extended up to a 24 month term.

There is a stage drawdown against Quantity Surveyor or Architect certificate to ensure fairness and compliance.

Benefits of working with Hilton Smythe

Market independence: Forget biased recommendations. We’re 100% independent financial advisers, free from funder or product restrictions. No commissions, no conflicts, just your best shot at financing tailored to your goals.
Access to a wide panel of lenders: We source exclusive loan deals unavailable through traditional lenders, unlocking bespoke lending solutions that meet your specific needs.
A leading SME finance specialist: We’ve been focused exclusively on SMEs since 2018, helping countless businesses reach their growth goals.

Get your application started today

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Over 35 years experience
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Completely independent
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Honest Advice
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Tailor-made solutions

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