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Development Finance

Development Finance Calculator

Plan your property development funding with detailed cost analysis, profit projections, and key lending metrics including LTGDV and LTC ratios.

Development Finance Calculator
Model your development project funding
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Used for £/sq ft calculations

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Development Finance Summary

Total Project Cost
£800,000
Total Facility
£650,000
LTGDV
54.2%
LTC
81.3%
Build Cost £/sq ft
£150
GDV £/sq ft
£600
Est. Interest Cost
£63,375
Equity Required
£150,000
Gross Profit
£336,625
Profit on GDV
28.1%
Profit on Cost
42.1%

Interest calculated on average loan drawn (65% of facility). Excludes arrangement fees, legals, valuations, contingencies, and other costs. Most lenders require minimum 20% profit on GDV.

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Our team can help structure the optimal funding package for your project.

Understanding Development Finance

Development finance is specialist funding designed for property developers undertaking ground-up construction or significant refurbishment projects. Unlike traditional mortgages, development finance is structured around the project lifecycle with funds released in stages.

Key Lending Metrics Explained

  • LTGDV (Loan to Gross Development Value): The total loan as a percentage of the completed project value. Most lenders cap this at 65-70%.
  • LTC (Loan to Cost): The loan amount as a percentage of total project costs. Typically up to 85-90%.
  • Profit on GDV: Your expected profit as a percentage of the end value. Lenders usually require minimum 20%.
  • Profit on Cost: Profit margin relative to your total investment. Target 25%+ for healthy projects.

Development Finance Structure

  • Day 1 Land Loan: Typically 60-70% of purchase price released on completion
  • Build Drawdowns: 100% of build costs released in stages against QS reports
  • Interest: Usually rolled up and paid from sale proceeds or refinance
  • Term: 12-24 months depending on project complexity