Development Finance

Moving From Planning Permission To Construction

Site Purchase Price: £650,000

Build Costs: £750,000

Estimated GDV: £2,100,000

A developer had secured planning permission for a residential scheme and needed funding to move the project into the construction phase.

A key consideration was putting a funding structure in place that supported the planned build programme and the expected cash flow requirements of the development.

Jason worked with the developer to understand the scheme, review the project costs, consider the projected GDV and set out the proposal clearly for lenders active in the development finance market.

In this case, a suitable development finance facility was arranged with staged drawdowns linked to construction progress.

Outcome

The developer was able to move forward with the project and commence construction with funding structured around the planned build stages.

This provided a clear basis for progressing the development while managing the project’s funding requirements through the construction phase.

These examples are provided for illustrative purposes only. Every case is assessed individually, and available finance will depend on the property, the borrower and lender criteria at the time.