Cost guide
How much does a Development finance cost?
Thinking about a new build, conversion, or big refurbishment project? Development finance is how many property owners make these exciting plans a reality. It helps you fund your project in stages, from specialist lenders. This guide will walk you through typical costs, so you can budget with confidence.
Typical price
£2,500 to £15,000
What changes the price
Project Size
Larger, more complex projects often involve higher finance arrangement fees.
Loan Amount
As a general rule, bigger loan amounts can mean higher overall costs.
Lender Fees
Different specialist lenders have their own unique fee structures and rates.
Broker Involvement
Using an expert broker can save you time and find better deals, but they charge a fee.
Project Duration
Longer projects may incur more costs over time, though finance is drawn in stages.
Experience Level
Experienced developers might secure better terms than first time project owners.
Prices by region
| Region | Low | Typical | High |
|---|---|---|---|
| London | £5,000 | £10,000 | £15,000 |
| South East | £4,000 | £8,500 | £13,000 |
| South West | £3,500 | £7,500 | £12,000 |
| East of England | £3,500 | £7,500 | £12,000 |
| Midlands | £3,000 | £6,500 | £11,000 |
| North West | £3,000 | £6,000 | £10,000 |
| North East and Yorkshire | £2,500 | £5,500 | £9,500 |
| Scotland and Wales | £2,500 | £5,000 | £9,000 |
Questions people ask
What exactly is development finance?
It is a type of specialist loan designed for property projects like building new homes or converting existing properties. The funds are usually released in stages as your project progresses, helping you manage cash flow.
Are there different types of fees involved?
Yes, common fees include arrangement fees, valuation fees, legal fees, and sometimes exit fees. These vary depending on the lender and your specific project.
Why use a specialist lender?
Specialist lenders understand the complexities of property development better than high street banks. They can offer more flexible terms and faster decision making tailored to your project needs.
Can I get finance for smaller projects too?
Absolutely, development finance is not just for large scale builds. Many lenders support smaller projects like a single new build or a significant extension or conversion.
How does CertifySpace help with costs?
We connect you with verified UK firms who specialise in development finance. You can compare free quotes side by side, ensuring you get the best deal for your project.
What can impact the interest rate I pay?
Interest rates are influenced by your project's risk, your development experience, the loan amount, and the overall market conditions. A strong business plan can also help.