Property Development Finance

Embarking on a property development project requires careful planning, expert execution, and most importantly – reliable financing that supports your vision from groundbreaking to completion. At Max Property Finance, we specialize in providing development finance solutions that empower both experienced developers and ambitious first-timers to bring their property projects to life.

What is Property Development Finance?

Property development finance is a specialist funding solution specifically designed for substantial property projects including new builds, conversions, and major refurbishments. Unlike traditional mortgages or bridging loans, development finance from Max Property Finance provides staged funding that aligns perfectly with your project timeline and cash flow requirements.

The beauty of development finance lies in its structured approach: funds are released in stages as your project progresses, covering both land purchase and construction costs. This means you only pay interest on the funds you’ve actually drawn down, maximizing your cash flow efficiency throughout the development lifecycle. Whether you’re building residential properties from the ground up, converting commercial spaces into apartments, or undertaking extensive refurbishments, Max Property Finance has the development finance solution to match your ambitions.

Who is Property Development Finance For?

Max Property Finance’s development finance solutions are designed for a diverse range of developers:

Experienced Property Developers

If you’ve successfully delivered projects before, Max Property Finance offers competitive development finance terms that recognize your track record. Our lenders value experience and provide higher loan-to-value ratios and better rates for proven developers.

First-Time Developers

Breaking into property development can feel daunting, but Max Property Finance specializes in supporting first-time developers with the right finance and guidance. We work with lenders who understand that everyone needs to start somewhere, and we’ll help you structure your first project for success.

Property Investors Scaling Up

Ready to move beyond buy-to-let into development? Max Property Finance bridges the gap, providing the specialized funding needed to transition from passive investment to active development.

Construction Companies

Builders and construction firms looking to develop properties for sale can access Max Property Finance’s development finance to fund their own projects rather than just working for others.

Joint Venture Partners

Whether you’re providing land, expertise, or capital, Max Property Finance structures development finance for joint venture arrangements, ensuring all partners benefit from optimized funding.

Types of Projects Max Property Finance Can Fund

Max Property Finance provides development finance for a comprehensive range of property projects:

New Build Residential Developments

From single luxury homes to multi-unit housing estates, Max Property Finance funds new build projects of all scales. Whether you’re developing apartments, houses, or mixed-use schemes, our development finance provides the capital you need.

Property Conversions

Transform commercial buildings into residential apartments, convert houses into flats, or repurpose agricultural buildings into homes. Max Property Finance’s development finance supports all types of conversion projects, including permitted development conversions.

Major Refurbishments

Substantial renovation projects that go beyond cosmetic improvements require development finance rather than standard refurbishment loans. Max Property Finance funds extensive structural work, extensions, and comprehensive upgrades that add significant value.

Mixed-Use Developments

Combining residential and commercial elements requires sophisticated financing. Max Property Finance has the expertise and lender relationships to fund complex mixed-use developments effectively.

Ground-Up Developments

Starting with raw land and building from scratch? Max Property Finance provides development finance that covers land acquisition and all construction phases, from foundations to finishing touches.

Student Accommodation

Purpose-built student accommodation represents a specialized development sector. Max Property Finance works with lenders who understand this market and provide tailored development finance solutions.

How Does Development Finance Work with Max Property Finance?

Understanding the development finance process helps you plan effectively and maintain control throughout your project. Here’s how Max Property Finance makes development finance work for you:

Stage 1: Initial Consultation and Feasibility

Max Property Finance starts by understanding your project in detail. We review your plans, assess feasibility, and determine the optimal financing structure. Our team evaluates your development experience, project timeline, exit strategy, and financial requirements.

Stage 2: Land Purchase Funding

If you haven’t yet acquired the development site, Max Property Finance can arrange finance for the land purchase. Typically, you’ll need to provide a deposit (usually 20-30% of the land value), with Max Property Finance securing funding for the remainder.

Stage 3: Planning and Professional Fees

Once land is secured, development finance from Max Property Finance can cover professional fees including architects, surveyors, planning consultants, and legal costs. These initial draws prepare your project for construction.

Stage 4: Construction Phase Funding

This is where staged funding really demonstrates its value. Max Property Finance arranges for funds to be released in tranches as your project reaches specific milestones:

• Foundations complete
• Structure to roof level
• First fix (plumbing, electrics, plastering)
• Second fix (kitchens, bathrooms, finishing)
• Practical completion

Each stage is verified by a monitoring surveyor before funds are released, protecting both you and the lender while ensuring capital is available exactly when needed.

Stage 5: Project Completion and Exit

As your development completes, Max Property Finance helps you execute your exit strategy – whether that’s selling the completed units, refinancing to long-term buy-to-let mortgages, or a combination of both.

Key Features of Max Property Finance Development Finance

Staged Funding Release

Max Property Finance’s development finance releases funds in stages aligned with construction milestones. You only pay interest on drawn funds, significantly improving cash flow management compared to lump-sum borrowing.

Competitive Loan-to-Value Ratios

Depending on your experience and project specifics, Max Property Finance can arrange development finance up to 70-80% of the Gross Development Value (GDV) for experienced developers, with first-time developers typically accessing 60-70% GDV.

Land and Build Finance Combined

Rather than arranging separate finance for land purchase and construction, Max Property Finance provides comprehensive development finance covering both elements in one facility, simplifying administration and often reducing costs.

Interest Roll-Up Options

Many development finance facilities arranged by Max Property Finance allow interest to be rolled up and repaid at project completion, preserving your working capital during the construction phase.

Flexible Loan Terms

Development finance from Max Property Finance typically runs for 12-24 months, with extensions available if required. We structure terms to match your realistic project timeline with appropriate contingency.

Fast Approval Process

When you’ve found the right development opportunity, speed matters. Max Property Finance can arrange development finance approval in as little as 2-3 weeks for well-prepared applications.

Professional Team Support

Max Property Finance connects you with experienced surveyors, solicitors, and other professionals who understand development finance, ensuring your project runs smoothly from legal completion to final sale.

Understanding Development Finance Costs with Max Property Finance

Transparency is fundamental to Max Property Finance’s approach. Here’s what to expect in terms of development finance costs:

Interest Rates

Development finance interest rates typically range from 6-12% per annum, depending on your experience, the project’s loan-to-value ratio, and complexity. Max Property Finance negotiates competitive rates by leveraging relationships with over 150 specialist lenders.

Arrangement Fees

Lenders charge arrangement fees typically between 1.5-3% of the total facility. Max Property Finance ensures these are clearly outlined upfront with no hidden surprises.

Monitoring Surveyor Fees

Independent monitoring surveyors verify each construction stage before funds are released. Fees typically range from £1,500-£5,000+ depending on project size and complexity. Max Property Finance works with trusted surveyors who provide thorough, fair assessments.

Valuation Fees

Professional RICS valuations are required for development finance. Costs vary from £1,000-£5,000+ depending on the project scale. Max Property Finance coordinates valuations efficiently.

Legal Fees

Both you and the lender require legal representation for development finance. Budget £2,000-£10,000+ depending on project complexity. Max Property Finance works with experienced property finance solicitors.

Exit Fees

Some lenders charge exit fees of 1-2% upon loan repayment, though this is increasingly rolled into the arrangement fee. Max Property Finance clarifies all fee structures before you commit.

What Makes Max Property Finance’s Development Finance Different?

Whole-of-Market Access

Max Property Finance isn’t tied to a single lender. We work with over 150 specialist development finance lenders, ensuring you get the right product for your specific project rather than being forced into a one-size-fits-all solution.

Experience Across All Development Types

From single-plot new builds to multi-unit estates, conversions to major refurbs, Max Property Finance has arranged development finance for every project type. Our expertise means better structuring and faster approvals.

First-Timer Friendly

Many brokers focus only on experienced developers. Max Property Finance actively supports first-time developers, connecting you with lenders who will back your first project and providing guidance throughout the process.

Realistic Feasibility Assessment

Before applying for development finance, Max Property Finance conducts thorough feasibility analysis. We’ll tell you honestly if the numbers work, helping you avoid costly mistakes and strengthen your application.

End-to-End Support

Max Property Finance doesn’t disappear after arranging finance. We support you through drawdowns, work with your monitoring surveyor, and help troubleshoot any issues that arise during the development.

Exit Strategy Planning

Securing development finance is one thing; successfully exiting is another. Max Property Finance helps you plan robust exit strategies, whether selling, refinancing, or a phased combination approach.

Development Finance Eligibility and Requirements

To secure development finance through Max Property Finance, you’ll typically need to demonstrate:

For Experienced Developers:

• Track record of completed developments (usually 2-3 projects minimum)
• Strong credit history
• Realistic project plans with planning permission (or clear path to planning)
• Professional development appraisal showing viable profit margins
• Experienced team including builder, architect, and surveyor
• Usually 20-30% cash contribution (deposit plus contingency)

For First-Time Developers:

• Strong property or construction industry background
• Professional development appraisal and business plan
• Qualified, experienced builder or main contractor attached
• Realistic project with clear planning status
• Usually 30-40% cash contribution
• Demonstrable project management capability

Max Property Finance works with you to present your application in the strongest possible light, maximizing approval chances even for challenging projects.

Common Development Finance Scenarios Max Property Finance Handles

The Builder Going Solo

You’ve built for others for years and now want to develop your own sites. Max Property Finance helps construction professionals transition to development with finance that recognizes your building expertise.

The Investor Stepping Up

You’ve built a rental portfolio and are ready for development. Max Property Finance provides the specialized funding and support to make this transition successfully.

The Land Opportunity

You’ve found land with planning permission but need to purchase and build quickly. Max Property Finance arranges rapid development finance to secure the opportunity.

The Conversion Project

A commercial building with residential conversion potential needs specialist development finance. Max Property Finance structures funding that accounts for both acquisition and conversion phases.

The Joint Venture

One partner has land, another has cash, and together you’re developing. Max Property Finance creates development finance structures that work for all parties.

Frequently Asked Questions About Max Property Finance Development Finance

Can Max Property Finance help first-time developers?

Absolutely. Max Property Finance specializes in supporting first-time developers with the right lenders and guidance. While requirements are stricter than for experienced developers, we know which lenders will back newcomers with strong projects.

Do I need planning permission before applying?

Ideally, yes. Full planning permission significantly strengthens your development finance application with Max Property Finance. However, we can sometimes arrange finance for projects with pending applications or outline permission, though terms may be less favorable.

How much deposit do I need?

For experienced developers, Max Property Finance can sometimes arrange development finance requiring just 20-30% contribution. First-time developers typically need 30-40% of the Gross Development Value as equity/deposit.

What if my project takes longer than expected?

Max Property Finance builds realistic timelines with contingency into development finance terms. If extensions are needed, these can usually be arranged for an additional fee, though it’s always better to plan conservatively from the start.

Can Max Property Finance arrange finance for multiple units?

Yes. Max Property Finance arranges development finance for projects ranging from single units to 100+ unit developments, with appropriate structuring for each scale.

What happens if I can’t sell the completed units?

Max Property Finance helps you plan for this contingency. Options include extending the development finance term, refinancing to buy-to-let mortgages, or a combination. We also help structure projects to allow phased sales, reducing risk.

Exit Strategies for Development Finance

Max Property Finance ensures you have clear, viable exit routes before committing to development finance:

Open Market Sale

The most common exit: selling completed units on the open market. Max Property Finance helps you assess realistic sale values and timelines based on local market conditions.

Buy-to-Let Refinancing

Keep the completed development as rental investment. Max Property Finance arranges refinancing to buy-to-let mortgages, often recycling capital for your next project.

Hybrid Approach

Sell some units for immediate profit while refinancing others for long-term rental income. Max Property Finance structures finance that accommodates this flexible approach.

Onward Sale to Investor

Sell the entire completed development to a property investor or institution. Max Property Finance has connections that can facilitate these transactions.

Forward Funding

In some cases, Max Property Finance can arrange forward-funding where the end buyer is secured before construction begins, de-risking the entire project.

Why Choose Max Property Finance for Development Finance?

Max Property Finance has established itself as a leading development finance broker by consistently delivering results:

• Extensive Lender Panel: Access to 150+ specialist development finance lenders
• First-Timer Support: Dedicated assistance for developers on their first project
• Fast Decisions: Development finance approvals in 2-3 weeks for strong applications
• Realistic Advice: Honest feasibility assessment before you invest time and money
• Expert Team: Decades of combined development finance experience
• Ongoing Support: We’re with you from application through to successful exit
• Transparent Pricing: Clear cost breakdowns with no hidden fees
• Proven Track Record: Hundreds of successful development finance arrangements

Ready to Finance Your Development Project?

Whether you’re an experienced developer planning your next project or a first-timer with ambitious plans, Max Property Finance has the development finance expertise and lender relationships to turn your vision into reality.

Property development offers substantial rewards, but only when properly financed. Don’t let inadequate funding derail your project or erode your profit margins. Max Property Finance ensures you have the right development finance structure from day one.

Contact Max Property Finance today for a no-obligation consultation. Let’s discuss your development plans and create a finance solution that maximizes your cash flow while delivering your project efficiently and profitably.

Max Property Finance UK Ltd is an Appointed Representative of The Fiducia Network Ltd who is authorised and regulated by the Financial Conduct Authority. We are a credit broker, not a lender. We work with the whole of the lending market to find you the best development finance solution for your project.