Floodlight onstruction site with cranes building a large commercial asset

Development Finance

We are a development finance broker that offers solutions on residential and commercial assets for individuals and a variety of ownership structures. We are able to procure funding up to 90% LTC / 75% LTGDV (lower thereof).  Funding is available from £500k.

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Construction site set for a skyscaper

Development Finance Funding Solutions

80% of completed project value

PBSA Specialist

Ground Up Development Finance

Permitted Development Finance

Refurbishment Finance

No Personal Guarantee Option (full/Ltd)

Development Exit Finance 

Land Mortgages

Pre Construction Loans

Structured Property Finance

Joint Venture/100% Funding

Mezzanine Finance

How Montpelier Private Finance Assists Our Clients

Commercial development finance at the planning stage

As a specialist development finance broker we offer extensive experience in sourcing market leading commercial finance solutions across both residential and commercial asset classes.  Whether it is a ground up development, permitted development, refurbishment project or development exit required, we commit to offering thorough due diligence in order to obtain a successful application with the best lender for you.

Types of Development Projects

Purpose Built Student Accommodation

A Tailored Approach


We understand that every development project is unique.  We take the time to fully understand your particular project and source a funding package that is right for your needs.  Whether its regular senior debt funding, stretch senior funding, mezzanine finance or Joint Venture (JV) funding we are able to source the best funding solution.

Commercial property finance construction site

We are a leading UK broker for Purpose Built Student Accommodation (PBSA) schemes.  Our deep understanding of these specific development schemes coupled with our relationship with specialised lenders ensures that you can secure the best funding terms available.  For more information visit our PBSA Finance section here

A PBSA Specialist

Current Products 

As a specialist development finance broker, Montpelier Private Finance sources funding from, but not limited to, family wealth offices, challenger banks, high street banks, private funds, pension funds and offshore institutions.  Below are just a small selection of the current funding opportunities offered by our lending partners.

A residential development of apartments in London under construction, funded with stretch senior development finance

Stretch Senior Lending Up To 75% LTGDV

  • Up to 75% LTGDV / 90% LTC gross (lower thereof)

  • Asset classes including residential, student accommodation, senior living, industrial and offices

  • Funding from £5m - £100m

  • Modular construction welcome

  • Funding available across the UK

  • Complex cases welcome

An architect working at his drawing desk with plans for a large commercial development

Development Finance With Only 4% Hard Equity Required

  • Planning enhancements and value adds considered towards the borrower equity contribution (a minimum of 4% hard equity required)

  • Up to 70% LTGDV / 90% LTC gross (lower thereof) 

  • Residential and non-residential asset classes welcome

  • Loans from £5m - £50m

  • Funding available across England and Wales

A residential refurbishment project, funded with development finance, where a construction worker is stood on a ladder securing the new ceiling

Development Finance Up To 90% LTC

  • Up to 75% LTGDV / 90% LTC (lower thereof)

  • Funding from £500k - £4m

  • Available for new build, conversions, refurbishment and equity release

  • For residential development projects

  • Available for individuals, UK Limited Companies, Limited Liability Partnerships and offshore borrowing entities in approved jurisdictions 

A construction site with scaffolding and bricks for a new residential development funded using mezzanine finance

Mezzanine Finance With Limited PG's

  • A lender that will match the Personal Guarantee requirement of the senior lender

  • Funding available up to 80% LTGDV 

  • Loans from £500k - £5m

  • All asset classes considered

  • Available across the UK

Case Studies

Endinburgh city skyline including the cathedral and university

257 bed scheme 

73% LTGDV facility 

£40m GDV

Modular construction 

Agricultural building with consented planning to convert to residential dwellings

Agricultural to residential development

90% LTC facility

No personal guarantees required

Edinburgh cathedral and university

108 bed scheme

65% LTGDV

£11.7m GDV

Construction complexities

Insights

Development Finance Frequently Asked Questions

If you are new to development finance and want to learn more you can visit our 'Development Finance Explained' page that sets out the different types of development finance, the criteria lenders use in making a decision, what a development loan is comprised of and the documentation required for a development loan.  Below are the answers to some some frequently asked questions.

What is LTGDV?

LTGDV stands for Loan to Gross Development Value.  This is where the finance is procured against the market value of the property once completed.

What is LTC?

LTC stands for Loan to Cost.  This is where finance is calculated against the cost of the project, including purchase price (if applicable).

How much can I borrow?

Montpelier Private Finance arranges development finance from £500k with no maximum loan size.

What is the maximum leverage that I can borrow?

All cases are dealt with on an individual basis but we are able to arrange funding up to 75% LTGDV / 90% LTC (lower thereof).

What is the maximum loan term I can secure?

The maximum term is 36 months.  For projects that are approaching completion we can arrange development exit finance when required.

Do I need experience to obtain development finance?

No, we can secure funding for first time developers. 

Do I need to use a development finance calculator?

When applying for development finance there are a large number of variables to consider such as whether lender fees are added or deducted and whether interest is rolled up or retained.  With this in mind we will identify the appropriate lender and calculate the costings for you.

How much deposit do I need for development finance?

Lenders will typically expect to see a minimum equity commitment of 10% of all costs in order to demonstrate the developer have sufficient 'skin in the game'.  However, there are lenders that will recognise planning enhancements and value adds which reduce the hard equity requirement to as little as 4%.

Can I borrow funds to pay for professional fees?

Yes, you can borrow funds for fees such as architects, engineering consultants and legal costs.

Do I have to make monthly payments with development finance?

Most development finance facilities are arranged so that monthly interest charges are added to the existing loan and then repaid when the loan is redeemed.  This is because income is only generated once the development is completed. 

Why do I need a broker?

A development finance broker will be able to comprehensively review the funding requirement to ensure that it is presented to lenders in the strongest possible light.  At Montpelier Private Finance we have access to lenders who are not direct to market, ensuring that our clients get the keenest funding package.  You can read more here.