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Tailored Development Finance for Your Needs
As a leading UK broker specializing in property development finance, we are dedicated to securing the best rates, providing exceptional customer service, and ensuring a smooth, efficient financing process. At W1 Finance, we know every project is unique, and we customize our approach to meet your specific needs. Our team of experts carefully evaluates every aspect of your deal, structuring bespoke financing solutions to give you the best chance of success.
Leveraging our deep knowledge of development finance markets, we negotiate with lenders, reduce fees, and champion the merits of your project at every step.
Residential Development Loans
When considering a loan, lenders evaluate factors such as your experience as a developer, credit profile, the project’s scope, demand in the location, land and development costs, profitability, gross development value (GDV), and your repayment plan. Crucially, they also consider how much cash or equity you’re contributing.
Here’s a typical overview for ground-up development finance:
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Locations: UK
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Maximum Loan to Cost (LTC): Up to 90%
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Minimum Loan: £100k
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Maximum Loan to GDV (LTGDV): Up to 75%
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Rates: From BBR +4.99% per annum
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Term: Up to 48 months, with JV and equity options available
We can tailor a development finance package for your needs, including senior finance, mezzanine finance, hybrid stretched senior finance, or equity solutions. Whether your project requires 90% loan-to-build cost or JV development finance covering up to 100%, we have a solution.
Additional options include:
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Mezzanine loans up to 75% LTGDV
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Bridging loans for site acquisition, planning, or project exit
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Residential and commercial development finance
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Senior investment and family office loans
Your Funding Request
To assess your funding request, we require comprehensive project information from the developer, including:
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Executive summary
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Borrowing entity and corporate structure
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Shareholders and directors' details
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Asset and liability statements for major shareholders
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Credit reports (Experian/Equifax)
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Development CVs for key personnel
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Project appraisal, cost analysis, and cash flow
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Planning consent and marketing strategy
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Any relevant drawings, CGI images, or market research
Market Research
Understanding buyer needs is critical. For larger schemes, a feasibility study that analyzes local and macro factors is essential to ensure project success. You don’t want to build homes that don’t fit market demand, such as building family homes in areas needing affordable housing for first-time buyers.
Be realistic about:
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Your experience
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Projected end values (plan for worst-case scenarios)
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Build costs (lenders use average local costs to assess risk)
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Project timelines (account for delays)
Lenders also scrutinize your contractor’s experience, cash flow, and past projects. A well-chosen broker simplifies the financing process by helping you prepare a strong formal application and addressing any eligibility issues.
Exit Strategy
The primary concern of lenders is how the loan will be repaid. Common exit strategies include:
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Selling the development (pre-sales or off-plan sales)
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Refinancing with an offer letter or decision in principle
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Leasing commercial properties like hotels, offices, or shops
For ground-up developments, short-term exit finance can be arranged to repay the initial loan and release equity.
How Much Can You Borrow?
Loan amounts and interest rates depend on various factors:
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Developer experience and credit history
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Net worth and background
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Land cost and build cost
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Gross development value
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Project type (new build, mixed-use, multi-unit)
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Feasibility analysis
Each project is unique, and we are here to guide you through the complexities of the development finance market, ensuring your funding is perfectly tailored to your needs.
