Development Finance

Development Finance Broker in Eastbourne, Sussex, Kent & UK

Development finance is a loan to pay for buying land and for building, converting or refurbishing property. The money is usually released in stages as the work progresses, and repaid when you sell or refinance.

We help property developers, builders and investors find suitable lenders and structure the finance. Our base is Hailsham and Eastbourne, and our clients are in Eastbourne, Brighton, Tunbridge Wells and the wider Sussex and Kent area. We also take on schemes elsewhere in the UK, through recommendations. Adam is a property investor and developer himself, so he understands appraisals, build budgets, planning and exit.

Who this is for

Developers building new homes or small residential schemes.
Investors converting or refurbishing property, including commercial to residential.
Builders who also develop and need finance for their own projects.
First-time developers who want help preparing their case.
Developers of commercial and mixed-use schemes.

Funding for Your Property Projects

As development finance brokers we can help you to secure a loan that is designed specifically to support property developers, with the purchase of land and the construction, conversion or refurbishment of buildings.

Whether you are planning a residential, commercial or mixed-use project, this type of finance can help make your vision a reality.

free initial consultation

What is Development Finance?

In simple terms, development finance is a short-term loan, used to fund property developments.

Unlike traditional mortgages that span decades, development loans are typically repaid within 6 to 36 months.

As specialist property development finance brokers, we often explain that these loans offer the flexibility and scale that standard loans often lack.

The focus is on building, converting or refurbishing residential, commercial and mixed-use property.

With our experience as development finance brokers, we know that lenders often ask for a pre-let or pre-sale agreement, depending on the scheme. This means having a tenant or buyer lined up before the project begins.

How Does Development Finance Work?

Property development finance works by providing tailored funding for each stage of the development process, from purchasing land, to construction and finishing touches.

The loan amount, that our development finance brokers can help you secure, depends on several key factors:

Gross Development Value (GDV): The estimated value of the completed development.
Build Costs: The projected costs required to complete the construction.
Equity Contribution: How much the developer is putting into the project upfront.
Day-One Land Cap: The percentage of the land value that can be loaned from the outset.

Before offering finance, lenders conduct thorough assessments, including professional valuations of the land, site and proposed development plans.

The key financial metrics they analyse are Loan to GDV (LTGDV) and Loan to Cost (LTC), which help them determine their lending limits and judge whether the project is financially viable.

Our development finance brokers will provide expert guidance to help optimise your project’s financial outcomes.

free initial consultation

Why Choose Development Finance?

Choosing development finance over other forms of lending comes with several distinct advantages:

Tailored Solutions: Lenders offer flexible terms designed specifically for property projects, with the ability to release funds at different stages of construction.
Short-Term Flexibility: With repayment terms of 6-36 months, development finance is structured around the timeline of your project, providing access to capital when it’s needed most.
Higher Loan Amounts: The ability to borrow based on GDV allows for larger loan amounts compared to traditional property loans, depending on the scheme and lender.
Help With Your Case: We help you prepare your case and deal with the lender.

As your property development finance broker we can help you navigate all the complexities and stages of this form of funding.

Who Can Benefit from Development Finance?

Whether you’re an experienced property developer, or an investor looking to break into the market, development finance can be a good solution.

In our role as development finance brokers, we have found that it is particularly beneficial for:

Residential Developers: Building homes, apartment complexes, or other residential properties.
Commercial Developers: Constructing or refurbishing retail spaces, office buildings, or warehouses.
Mixed-Use Developers: Creating projects that combine residential and commercial elements.

Regardless of your development type, the right finance solution can make all the difference in completing a project on time and within budget.

How is the Loan Repaid?

Development finance is typically repaid once the development is completed and sold, or when the developer refinances through a longer-term mortgage.

This means the short-term loan acts as a bridge through the development process, ahead of longer-term finance.

By engaging with our development finance brokers, you get expert guidance for the full end-to-end process.

How it works

Our process, in plain steps:

Step 1: You tell us about the project: the site, the price, your build budget, the expected value when finished (the GDV), the planning position and your experience.
Step 2: We check how lenders will see the scheme and come back to you with indicative terms.
Step 3: The lender values the site and the scheme, and usually appoints a surveyor to monitor the build. Solicitors do the legal work.
Step 4: Funds are released in stages as the work is completed and the surveyor signs it off.
Step 5: You repay when the development is sold or refinanced. We plan for that from the start.

Common mistakes we help you avoid

Using an optimistic value for the finished scheme. The lender’s valuer sets the figure, not you.
Leaving too little contingency for price increases and delays on the build.
Forgetting the interest and professional charges in the appraisal.
Not having a plan B if sales are slower than expected.
Going to lenders before the planning position is clear.
Underestimating how long valuation, legal work and drawdowns take.
Forgetting VAT, Community Infrastructure Levy and other planning charges.

How the money and interest work

Interest on development finance is usually added to the loan and paid back at the end, so the amount owed grows as the build goes on. Lenders normally lend only part of the project spend and part of the finished value, so you put in the rest as equity. This can be cash, and the value of land you already own can often count. The amount depends on the lender, the scheme and your experience.

Development finance or bridging?

Development finance is for projects where money is released in stages as the work goes on. Bridging is usually a single advance for a quick purchase or lighter refurbishment. Some projects use bridging to buy the site and development finance to build. See our bridging loans page.

Can you arrange a self-build mortgage?

Yes. A self-build mortgage is for people building their own home. It releases the money in stages as the build progresses, rather than all at once. It is secured on your home. Because it is a residential mortgage, it is regulated, unlike most development finance.

If you are building to sell or let rather than to live in, development finance may be the better fit. We can talk through which one suits you.

If you cannot keep up the payments on your mortgage, your home could be repossessed.

Why choose Coastline Financial?

We work with developers and investors as a long-term partner, offering:

Independent financial advice and specialist mortgage and commercial finance expertise in one place, so your development finance and your wider finances can be planned together.
Whole-of-market advice with no restriction to a particular lender, so we can look for one that suits your scheme.
A lifelong, personalised service across property finance, pensions, investments, protection and estate planning. We work alongside your solicitor and accountant, so the finance and the legal work for your scheme fit together.
We are members of the NACFB, with a specialist suite of commercial property finance services that ranges from development finance and bridging to commercial mortgages. As a result, we can plan the build finance and the loan that follows.
Adam is a developer and property investor himself, so he understands appraisals, build budgets, planning and exit routes.
Highly qualified advice: Adam Robinson, MD, has accreditation as a financial adviser from the London Institute of Banking & Finance (LIBF), plus the highest level of mortgage advice qualification from the Chartered Insurance Institute (CII).
A dedicated team across administration, paraplanning and compliance. Meanwhile, you deal directly with Adam throughout.
Rated 5.0 on Google reviews.

What clients say

“Adam has been a brilliant help from start to finish, nothing is too much trouble – highly recommend!”

M Earl, Eastbourne, East Sussex

Frequently asked questions

How does development finance work?

The lender funds part of your project spend and part of the finished value. Money is usually released in stages as the work is completed, checked by a surveyor. You repay when you sell or refinance.

How much deposit or equity do I need?

Lenders normally lend only part of the project spend and part of the value of the finished scheme, so you put in the rest. This is often a fair share of the total project spend. The land you own can count towards it. The exact figure depends on the lender, the scheme and your experience.

What do GDV and LTGDV mean?

GDV is the gross development value, the expected value of the finished scheme. LTGDV is the loan as a percentage of that value. Lenders also look at the loan against the total project spend, and usually lend the lower of the two limits.

How are funds released?

Usually in stages. The lender’s surveyor visits and checks the work done, then the next payment is released. Some lenders release part of the land purchase on day one.

Can I get development finance as a first-time developer?

Some lenders will lend to first-time developers, usually with a higher equity contribution, and they look closely at your team and your plan. It is not guaranteed. We can tell you what is realistic.

How long can I borrow for?

Development loans are usually short-term, often between 6 and 36 months, depending on the scheme.

Do I need planning permission?

Usually yes for a new build or change of use before the lender will release funds. Light refurbishment may not need it. We ask about the planning position at the start.

What is the difference between development finance and a bridging loan?

Development finance releases money in stages for a build. Bridging is usually one advance for a quick purchase or lighter work. Some projects use both.

Important information

Development finance is generally not regulated by the Financial Conduct Authority. This means some protections that apply to residential mortgages may not apply.
Your property, and possibly other assets, may be at risk if you cannot repay. Personal guarantees may be required.
Projects can overspend, take longer or sell for less than planned, and interest and other charges continue to build. You could lose some or all of your equity.
Lending criteria, rates and charges change and depend on the lender’s assessment of you and the project.
If you are building your own home, a self-build mortgage may be more suitable. Self-build mortgages are residential mortgages secured on your home, and they are regulated.
What this page says about development finance is general information and not personal advice.

Where we work

Hailsham and Eastbourne is where we are based. We meet developers in person, or speak by phone or video. We regularly work with developers and investors in Eastbourne, Brighton, Tunbridge Wells and across Sussex and Kent, and further afield across the UK.

Talk to us

Planning a development? Talk to us before you commit to the site, so the finance is lined up.

Call 01323 335099, email info@coastlinefinancial.co.uk or use the contact form to get in touch or book a call.

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