Development finance is a short-term finance product that helps property professionals fund property development schemes.
BFS provides fast and flexible finance for all types of development project across England, Scotland and Wales. Whether you are constructing several homes for profit, self-building a home for your family, converting a rural barn into a liveable space or refurbishing a derelict property, we can help you to make it happen.
We are privately funded which means we have the flexibility to make fast decisions and offer a quick turnaround on funds, making all the difference between a project happening or not. Our team can provide up to 100% of the funding you need with additional security, including funds for the land purchase, and we always cover 100% of build costs. We typically lend a greater percentage of the overall costs of a scheme than traditional lenders enabling you to work your capital harder.
Our widely varied customer base includes property developers, investors and private individuals and our experienced team also help brokers and other professionals to achieve the most cost-effective funding structures for their clients.
Ultimately, it is our passionate approach and superb customer service that ensures our clients come back time and time again.
We can finance…
Residential Developments for Profit
- Single-build houses
- Clusters of up to 10 houses
- Permitted development rights schemes
Self-Build Home Projects
- A from-scratch build on previously undeveloped land
- A complete home rebuild, following demolition and a full architectural redesign
- The construction of a property within the grounds of your existing property (e.g. building an additional house in a large garden)
Property Conversions
- The conversion of lofts, cellars, and garages – adding more living space
- Commercial-to-residential conversions (e.g. turning churches or former offices into flats)
- Barn conversions
Property Refurbishment Projects
- Auction properties
- Unmortgageable properties (missing a bathroom or kitchen)
- Changing residential property into HMO
- Converting commercial property into flats
How does development finance work?
We will work with you to consider your plans, including discussion of your planning permission (and any related conditions), your new-build warranty provider (e.g. NHBC), your timeline for the requirement of funds, and any other features that are important to your application. Please note that for new build projects, it is essential to have a structural warranty in place in order to secure funding. You can learn more about structural warranties here.
Property development finance is usually based on the Gross Development Value that is, what the site will be worth once the refurbishment, conversion or construction project is complete. You will receive your development finance in stages as your project progresses monitored by our retained Quantity Surveyor / Project Monitor. We will, of course, agree on the dates and amounts of these stages with you beforehand.
Property development bridging loan
We can offer you a development finance loan term that is suitable for your project – normally 12 months – but we can discuss a longer-term with you if required. You will only pay interest on the monies you actually draw. The amount you borrow is based on the strength of your proposal and the fastest way to find out how much you are eligible to borrow is by speaking to one of our expert team.
Find out more
Residential Development Finance >
Self-build Mortgages >
Property Conversion Finance >
Property Refurbishment Finance >
Frequently Asked Questions
What is the minimum and maximum I can borrow for property development finance?
BFS lends from £50,000 up to £2,000,000 for property development projects across England, Scotland and Wales. The amount you can borrow will depend on the strength of your proposal and the Gross Development Value of the completed scheme.
How is property development finance paid out?
Funds are released in agreed stages as your project progresses, rather than as a single lump sum. Each drawdown is monitored by a retained Quantity Surveyor or Project Monitor, and you only pay interest on the money you have actually drawn down.
Do I need planning permission before applying?
BFS will discuss your planning permission and any related conditions as part of the application process. For new build projects, a structural warranty (such as one provided by NHBC) must also be in place before funding can be secured.
How quickly can development finance be arranged?
As a principal lender working with its own funds, BFS can make a lending decision within hours and draw funds in days. There is no need to consult third parties, which significantly speeds up the process.
What types of projects does BFS fund?
BFS funds a wide range of development projects, including residential new builds, self-build homes, property conversions (such as barn conversions and commercial-to-residential), and refurbishment of auction or unmortgageable properties. Projects involving single plots through to clusters of up to ten homes are all considered.
