The Basic Requirement For Development Finance Uk

For a lender to provide the residential or commercial development finance, there must be an appropriate planning permission. Lenders for development finance UK requires detailed planning permission. Some will fund schemes to purchase a site at 100% development finance with outline planning permission but it will depend upon the detail. For any funding scheme, the minimum requirement would normally be a defined access and footprint. The planning permission will exist for residential and commercial development. It could be granted for industrial, office or retail, student, key worker, social housing, etc. Furthermore, it can also be granted to mixed used scheme which encompass residential with an element of one or more of the other uses.

Residential development finance is available on a speculative basis such as without pre- sales of property before construction starts. Pre-sales usually reduce the lenders risk and often allow for a higher loan and/or reduced pricing. A 100% development finance may be granted on this case as soon as property developers meet the specific criteria for this fund. Funding for mixed used schemes is available from lenders if repayment of all or most of the loan can be made based on the residential element.


Commercial development finance, at high levels of gearing, is generally only available from high street banks if the property is pre-let or pre-sold. There are other arrangements from several lenders for development finance UK for this particular funding. But what lenders naturally want to see is the feasibility of the commercial development with the lowest risk possible.

By: Cherry Bo

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Cherry Bo is providing financial solutions to development projects or owning property by the services of Dial Financial Service LTD. With Dial Financial under development finance UK, you have various options to get the needed funds.

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