Published 28 February 2016 · Last reviewed 1 May 2026
The world of development finance is going through a little revolution with a number of lenders offering up 100% of development finance once a property has been purchased.
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At Niche Funding we are currently receiving a flurry of enquiries from landlords who are buying up freehold properties to develop into apartments. It’s great to see the market is buoyant but with so many different providers it is essential applicants do their homework. 100% Development finance is also possible so read below on some of the criteria involved in this type of lending.
For the bridging-finance leg of a development deal, see live lender rates on the transparent bridging calculator.
When it comes to starting off the project. It will all come down to the risk and rewards which will determine which lenders we can approach. The credentials and past experience of the developer has a major part to play in who we choose together with how much they’re willing to put down for the project themselves.
Another vital touch point is planning permission. In my opinion there is no point providing a Gross Development Value (GDV) figure for the completed project if you have not moved past first base and been granted planning permission as this will have lenders questioning your creditability.
At Niche Funding we ensure our clients the best possible financing solutions; whether it’s consist of an upfront bridging finance facility which can be converted into longer term development finance or a development finance product right from the start.
Larger Development finance solutions with planning
For larger loans typically over £500,000. We may be able to offer up to 75% of the purchase price together with hundred percent of the development costs. However, this is very much position at an experienced developer with planning permission and a comprehensive schedule of works.
Smaller Development finance Solutions with planning
If the development is smaller, then we can potentially look at alternative providers who will potentially fund between 50 to 65% of the initial purchase together with the facility of funding the full development costs. However, once again planning permission must be in place.
No planning permission granted as of yet – purchase solution
Typically this will be the trickiest type of project because it may mean we will have to do opt for a bridging finance solution and convert the deal into a development finance at a later date. Once planning permission has been granted. Fundamentally, this type of deal will always be based on the asset and the type of property / land in place. If it’s a home for example, which is going to be converted into flats, then lenders will typically look to lend between 60 to 70% of the initial purchase, then once planning permission has been granted we can flip the project onto a viable development finance solution possibly at hundred percent of cost.