Development Finance

Development projects can be ideal for those wanting to see big returns on their property ventures.

However extraordinary the project, our expert team will tailor an innovative and cost-effective solution. And once you know that the hard work of arranging the finacing is taken care of, you can get back to capitalising on every opportunity.

Development Finance

As a specialist area of the market, development finance requires bespoke solutions.

Projects vary greatly, therefore it is important to be thorough to find the best possible product. Our specialist development team can source funding for most projects, from renovations to ground builds. Each case is considered on its own merits and manually underwritten, allowing us to tailor a solution specifically for you.

What is Development Finance?

Development finance is as flexible as the projects it funds. Different projects require different options.

This short-term funding option is perfect for those looking to undertake light refurbishments on a property to change from one property type to another. Normally lasting up to 12 months, a typical bridge is secured against a property, with an “exit” route needed to complete the drawdown. Depending on the project, this could be anything from the sale of a property to an offer for a term loan.

For projects in need of higher loan amounts and longer terms, you may need to explore the option of development finance. Covering both the purchase of land and building costs, this product is more suited to those working from the ground up.

Sourcing this type of funding is a more time consuming process than a refurbishment bridge, as there are a lot more stages, checks and paperwork involved. That’s where we come in, steering you through the process, keeping everything on track and getting your finance monies through with the minimum of hassle.

And if you’re an experienced developer with additional property in the background, you can speak to one of our trusted advisors about using the equity in your existing property to secure funding.

Common Uses

Once you’ve settled on your development plans why not call us straight away to talk through your options. Your plans might include

Typically, this type of refurbishment alters the aesthetics of a property, though this could involve altering the floors, walls and ceilings. As a general rule, light refurbishment doesn’t alter the structure of the property and work may cost less than 15% of the property value.

Also known as renovation, this use of funds stretches to the moving of amenities such as electrics, gas or plumbing, as well as the altering of the property’s structure or for work costing more than 15% of the property value.

as the name suggests, this type of finance is usually used by those looking to start from a clean slate, be it an empty plot of land or the demolition of an existing lot.

Product panel highlights

Development Highlights

  • Mezzanine, senior, pre-sale and stretched options available
  • Up to 36-month term
  • Up to 100% build costs
  • Maximum loan £40m
  • All circumstances considered

Bridging Highlights

  • Up to 80% LTV
  • Up to 36-month term
  • 1st and 2nd charge accepted
  • Commercial, residential and land
  • Property, luxury asset and unsecured options available

Examples of use

  1. An experienced, small-scale builder purchased a plot of land behind a house in Fulham, with planning for a new house to be built. The purchase price is £382,000, the build costs £200,000 and the end value of the house £1m - which will then be sold on. We have secured 65% of the purchase and then 100% of build.

  2. A landlord had a portfolio of properties, one of which was a seafront house on the South Coast worth £1.2m. He teamed up with a local builder to convert this into 5 x 3 bedroom flats at a cost of £240,000 with an end value of £1.9m. He now plans to remortgage and let the flats – increasing the rental income to the portfolio.

    This loan was arrangedin two stages – the existing mortgage of £720,000 was replaced to allow the development to take place (the current buy-to-let lender wouldn’t allow any works). Secondly, the lender will advance money to cover 100% of the development costs.

  3. A first time developer purchased a bungalow in need of renovation for £126,000. He obtained planning permission to demolish and replace this with a 4-bed detached house. The work was to cost £150,000 with an end value of c£500,000. The borrower teamed up with a local builder with a fixed price contract in place and this meant we could obtain funds for the full development cost.

Key terms explained

  • LTVLoan To Value the amount of money you are eligible to borrow as a percentage of the property’s value.
  • MezzanineOften used at in between stages of development finance, mezzanine finance combines debt and equity financing, allowing property professionals access to more funds.
  • Pre-saleA property is purchased from the vendor, before they are build/renovated.
  • Senior StretchedA combination of both an asset based loan and a cashflow loan.
  • ValuerAlso known as a Valuation Surveyor, a valuer deduces the value of a property, land or assets, based on a variety of factors.
  • QSA Quantity Surveyor is the person tasked with calculating the materials needed for a job, and the costs involved.
  • Development CVdetails of past projects details, price paid, build costs and sale price – should include profit made.
  • Ground-up developmentA development project that starts from the projects foundations (the ground), similar to starting the project from scratch.
  • Development appraisal An assessment of the financials associated with a project to determine its viability to the developer.
  • S106Also known as Section 106 agreements, are planning obligations that are based on that section of the 1990 Town & Country Planning Act. These private agreements are made between local authorities and developers. These agreement, when attached to a planning applications, can often mean the difference between an acceptable and an unacceptable project
  • Contractors' All Risks (CAR)An insurance policy covers both damage to a property and third-party injury or damage claims. Contractors' all risk (CAR) insurance policies are considered non-standard insurance policies.
  • New-Build warranty A 10-year insurance policy on a property, which protects buyers of new homes from structural defects.

Crystal Private Finance, Unit A, Ventura House, Ventura Park Road, Tamworth, B78 3LZ

Tel: 01827 338 808

Fax: 01827 51284


As a mortgage is secured against your home or other property, it could be repossessed if you do not keep up the mortgage repayments.
Think carefully before securing other debts against your home.

Some types of buy-to-let and commercial mortgages and bridging loans are not regulated by the Financial Conduct Authority.

Crystal Private Finance is a trading name of Crystal Mortgages Ltd. Authorised and regulated by the Financial Conduct Authority. Crystal Specialist Finance is entered on the Financial Services Register under reference 303761. Registered Address: Crystal Mortgages Ltd, Unit A Ventura House, Ventura Park Road, Tamworth, B78 3LZ. Registered in England and Wales Company no: 4407643.