Lender Criteria for Development Finance

Loan details
Initial Land Value (day 1)
Purchase Price

If the land was purchased within the last 2 years for less than the current land value, we will lend up to 65% of this figure
Initial Loan (day 1)
Initial Loan (day 1) must be less than 65% of Initial Land Value (day 1)
Build term (months)
Sales period (months)
Minimum 6 months
Construction Costs
Gross Development Value

Construction Contingency 10%

Total loan amount

LTGDV

The LTGDV is higher than 70%. Please review the Initial Loan (day 1), construction costs and gross development value fields.

Day 1 LTV

Instant Results

GDV	0
Initial Loan (day 1)	0
Total Loan Amount	0
LTGDV	0
Day 1 (LTV)	0
Margins at	0
Build Term (months)	0
Minimum Term (months)	0
Assumed arrangement fee @2%	0
Admin fee	0
Exit fee	0
Net Day 1 Advance (after deductions)*	0

Lender Criteria for Development Finance

Finding the right lender for a property development project is always easier with an experienced broker in your corner.

The Revolution Brokers team has years of experience in construction mortgages and can help with every aspect of planning and financing your development!

Here, we summarise the significant lender criteria to understand before you apply and select a mortgage provider - aiming to help you understand what a development finance provider will look for and what might be a deal-breaker in your application.

For bespoke assistance with negotiating competitive lending for any size of the development, give the team a ring on 0330 304 3040, or email us at [email protected].

How Does the Application Process Work for UK Commercial Development Finance?

Let's run through exactly how it works; from deciding to apply for funding to develop a property, through to work beginning!

First up, you'll need to have at least an idea of budgets. It's essential to have an indication of how much your development will cost, what you'd expect to sell it for, and therefore how much profit is involved.

Next, we'd recommend contacting the Revolution team to discuss. Our development finance experts will take a look at your calculations, ask any questions that we know a lender would ask, and start identifying the best sort of financing for your project.

Once we've taken a look, we'll give you some estimates of what sort of interest rates and fees you can expect to pay in today's lending market. If you're happy that the indicative costs are viable and competitive, we can shoot over a written quote. That includes all the interest rates, fees, terms and a list of all the paperwork we'd need to proceed.

If you decide to go ahead, we'll work with you on the application. Revolution Brokers creates a full report to accompany the application, pre-empting any queries or concerns we'd expect the lender to have.

Provided the lender is happy, they'll usually ask to come for a site visit and meet with you. This step is worthwhile since it gives the lender a better idea of your plans and allows them to get better involved with the project. Don't worry; we'll help organise this all!

Following the site visit, the representative will report back to their teams, including the underwriters responsible for finalising terms and assessing the risk level. Once the approval goes through the underwriters, you'll get a formal lending offer - with details of what else will be needed, such as a property valuation and legal paperwork.

A surveyor will need to visit the site to carry out a valuation. This process can take a little while as they'll report both to you and the lender on what they think the property (or land) is worth now, what it will cost, and what you can expect to sell it for.

When the valuation comes back, the application goes to the legal stages. That means giving the paperwork and offer to your solicitor, checking you understand all the clauses, and sending back a signed acceptance.

That's it! Once all the signatures are received back, your facility will be live, and you will be able to draw down your first tranche of funding.

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