From ground-up builds to conversions, Phoenix Commercial Finance can help you access the right loan for your next development project.
It doesn’t matter how much experience you have; we have access to specialist development finance lenders across the market who offer straightforward solutions that are designed to match your build schedule and cash flow. So, whether you need development finance for a ground-up construction project, a commercial conversion or a major property refurbishment, our team will structure funding that supports your project from first draw-down to completion.
If you’d like to speak to one of our experts about a development finance loan, send us a message on WhatsApp – we’re happy to help.
Development finance refers to specialist funding designed to support construction, conversion and major refurbishment projects. A development loan is typically structured to support UK property developers, property investors and businesses undertaking new-builds or redevelopment schemes.
Unlike traditional mortgages, property development loans are typically released in stages known as drawdowns. These payments are aligned to the progress of the build, helping manage project cash flow effectively.
Funding is usually based on a combination of:
• The value of the site or property
• Build costs
• The projected Gross Development Value (GDV)
Development finance can be structured in several ways depending on the type of project and the experience of the developer.
Ground-up development finance covers new-build residential or commercial schemes from initial site purchase through to completion. This type of property development loan is commonly used for housing developments, mixed-use schemes and large commercial projects where funding is drawn down in stages as the build progresses.
Property refurbishment finance is suitable for light, medium or heavy refurbishments, including conversions and change-of-use projects. Where planned improvements will significantly increase the value of an existing property, refurbishment finance can be structured as a development loan, with UK lenders typically lending against the projected end value rather than the current one.
Short-term bridging finance is often the fastest way to secure a site or property before longer-term property development lending is arranged.
A bridging loan for property development gives property investors and developers the speed to move on opportunities without delay - and where the works are substantial, heavy refurbishment loans can bridge the gap until a full facility with a specialist development finance lender is in place. You can also explore our bridging loans if you require short-term funding before arranging a full development finance facility.
Each facility is designed around the project’s risk profile, build programme and exit strategy.
Residential development finance is used for projects such as single-unit builds, housing schemes, conversions and refurbishments intended for sale or refinance.
Designed for offices, retail units, industrial developments, mixed-use schemes and larger commercial construction projects.
This type of development finance often involves more complex funding structures and requires experienced commercial development finance lenders.
Phoenix Commercial Finance works closely with development finance lenders across both commercial and residential sectors, ensuring the development loan reflects the asset type, project scale and exit strategy.
Every property development loan needs a clear exit strategy. Planning the exit is a key part of arranging development finance.
Common exits include:
• Sale of the completed units
• Refinance onto a buy-to-let or commercial mortgage
• Development exit finance or a development exit loan to allow more time for sale or stabilisation
We will ensure your development finance loan is structured with the exit in mind from day one, reducing risk and avoiding unnecessary pressure at the end of the project.
Most property development finance facilities require a level of borrower equity. This can come through:
• Cash contribution
• Existing land value
• A combination of both
Rates, leverage and terms vary depending on experience, location, project complexity and exit strategy.
When structuring development loans, lenders also consider equity loan interest rates and market-based equity loan rates, depending on the level of leverage involved.
Our role is to present your project clearly to development finance lenders and secure terms that support delivery and not just approval.
We support residential, commercial and mixed-use projects across the UK, and where a project requires bridging finance before transitioning into a full development loan, we can manage that journey seamlessly from one stage to the next.
From acquisition through to completion, we handle the entire process end to end, so your property development loan stays aligned with your project every step of the way.
If you’re planning a development or heavy refurbishment project and need property development finance that aligns with your timeline, speak to our team about your project today.
Whether you need a property development loan, bridging finance to get started, or specialist commercial property development finance structured around a complex scheme, our team will find the right solution across our panel of UK lenders.
Get in touch with Phoenix Commercial Finance on WhatsApp or complete our quick enquiry form to explore the best development finance options available to you.
A bridging loan for property development is usually used to acquire a site or property quickly. Phoenix Commercial Finance can assess your project and advise whether a bridging loan or full development finance is more suitable.
Eligibility depends on factors such as project type, borrower experience, location, build costs and exit strategy. A strong proposal and realistic figures are key.
Refurbishment finance ranges from light refurbishment loans to heavy refurbishment or development finance, depending on the scope of works. We help match the funding to the scale and complexity of the project.