Published 24 November 2012 · Last reviewed 1 May 2026
100% of Build Costs On Day One
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- Loans from £50,000 to £20,000,000
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- Lending on the end value
Property Development Finance is not always stright forward, If you have had experience in obtaining development business you will have encountered phrases such as ‘lend against open market value’ and ‘based on a 90 day valuation’. This is jargon associated with the maximum a suitor is prepared to lend against.
It is not uncommon for the lender to restrict the borrowing to sixty five to seventy five percent. This may be enough? However this short sightedness often means that sometimes even the best strategies of developing plots struggle to get off the ground.
How Can I Borrow More To Develop?
Well we can help educate you to think laterally rather than look at developments in isolation, for instance it could be the case of securing finance temporally across multiple assets.
Where Traditional Finance Sources Fail
Well, in short, as they simply do not advance enough.
For example, it could be that you have bought a plot for £100,000 (A) and plan to build five residential bungalows on it. The expected value at the end of the project is £850,000 (B) and the cost to build the properties is £400,000. In simple terms the project appears to stack up with a straight £350,000 profit. But how do you get from A to B unless you have £400,000 readily available?
At best traditional mortgages and bridging finance would typically lend a fraction of the value in arrears after the first stage has been built and then only on the value as it currently stands not taking into account the end game.
To return to the example, this might mean after the first stage the development is worth £150,000 (to include the £100,000 plot and £50,000 for the foundations). The lenders would advance say 65% of this i.e. £97,500 towards your outlay to date. It can get very messy and hard on cash-flow and often unworkable.
Our Solution Advances Development Costs Upfront:
At Niche Advice we have access to a range of lenders working in the Property Development Finance arena, with funding that provides 100% of the build cost on day one! That’s right, no: ifs, buts maybes, interim valuations etc. Such a powerful tool is however, restricted to developers with a provable track record and well conceived business plan for the new project.
Product Detail:
Development funding available for up to 6 houses or 4 flats per project.
Typically restricted to London, South East, West Midlands and South Wales.
How much does it cost:
Each case is underwritten on its own merits but rates are around 1.5% a month and the Lender charges are typically 2% of the Loan advance. Legal and Valuation fees also apply. Full infomration can be provided once we have more detail on the project.