Property people first
Build
Up to 70% LTGDV
Up to 24-month term
Our team of property experts can support your new-build project with more than just funding.
We have underwriters, chartered surveyors, construction experts, valuers and lawyers who can be on-hand to help guide your project to completion.
Designed for a wide range of residential property types, our tailored Ground Up Development Loan provides a straightforward, competitively priced funding solution, allowing you to get started on your new development.
Whether it’s a full restoration, extension or conversion, our team of property and financial specialists can help you maximise the potential of your transformation project.
Our range of development finance loans are ready to be tailored to your unique needs
1
Once you have completed and submitted an enquiry form about your project, one of our experts will review and respond to you.
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Our team willl then talk you through your options to find a tailored solution that aligns with your project and ensures best chance of success.
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When you’re happy to proceed with an agreed funding solution, we will do our verification checks and advise you on a drawdown date.
Development Finance is used to help you realise your property vision, whether that’s a new-build or refurbishment project, our funding can support you at every stage of the journey.
Development finance provides funding throughout the lifecycle of a project. An initial advance can assist with the purchase of the site, with the remaining funds released in stages to cover construction costs as works progress.
This structure helps ensure funding is available when needed, while supporting effective project monitoring and cashflow management.
Development finance is typically based on the current value of the site, the cost of the build and the anticipated value of the completed development (GDV).
At MSP, we can lend up to 70% of the LTGDV and up to 100% of the build costs, subject to the overall viability of the project. An independent valuation will be used to assess these figures and determine the appropriate funding structure.
Every application is considered on its own merits, ensuring sufficient funding is in place to complete the development and deliver a successful outcome.
In addition to interest, development finance may include arrangement fees, valuation fees, legal costs and monitoring surveyor fees. The exact costs will vary depending on the size and complexity of the project. Your lender should provide a clear breakdown of all fees before you proceed.
Development finance is typically provided for up to 24 months, although the term will depend on the nature of the project.
A straightforward refurbishment may only require a six-month facility, while a larger ground up development could require up to 24 months to allow for construction and sale.
The loan term is designed to provide sufficient time to complete the development and implement the agreed exit strategy.
Development finance can be used to fund a wide range of residential projects, including ground up developments, conversions, change of use schemes and heavy refurbishments. Funding can support both the acquisition of the site and the costs associated with completing the development.
Development finance is designed to fund the purchase and construction costs of a project. Unlike a traditional mortgage, funds are typically released in stages as the development progresses.
To learn more about the process, read our guide on how development finance works.
Timescales will vary depending on the complexity of the project and how quickly information is provided. Once key information has been received, development finance can often be arranged within a matter of weeks.
Working with an experienced lender and having supporting documentation prepared in advance can help keep the process moving efficiently.
The level of experience required will depend on the size, complexity and risk profile of the project. While previous development experience can strengthen an application, lenders will also consider factors such as the quality of the professional team, the proposed scheme and the overall viability of the project.
Every application is assessed on its own merits.
Development loans are typically repaid through the sale of completed units or by refinancing onto a longer-term lending facility. The proposed repayment strategy, often referred to as the exit strategy, will be assessed as part of the initial application process.
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