Question 1

What deposit / equity do I need for a development?

Accepted Answer

Most senior lenders fund up to 65% of Gross Realisable Value or 80% of Total Development Cost — whichever is lower. So you need 20–35% equity, depending on the deal. Mezzanine finance can reduce that further at a higher cost.

Question 2

Do lenders require pre-sales?

Accepted Answer

Banks usually require 70–100% debt cover via qualifying pre-sales. Many non-bank development lenders will fund with limited or zero pre-sales — at a higher rate — which can be useful for spec or build-to-rent projects.

Question 3

How are drawdowns managed during construction?

Accepted Answer

Funds are released in progress payments certified by a quantity surveyor. We structure facilities so contingency, interest reserves and fees are factored in upfront — no surprises mid-build.

Question 4

What's the typical development loan term?

Accepted Answer

Most facilities run 12–24 months, aligned to your build programme plus a sell-down or refinance period. Extensions are available but usually attract a fee.

Property Development Senior & Mezzanine

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