Funding built around the project and its exit
A development needs funding that matches how money is spent from acquisition through construction to sale or refinance. A credible budget, realistic timetable and repayment plan matter as much as the headline loan amount.
TLA Finance can review the proposal, identify suitable lending routes and help present the project to relevant lenders. We assess the scheme, the people delivering it and the funding available to support it.
From Amersham, TLA Finance supports clients in Buckinghamshire, London, the Home Counties and across the UK.
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Any property or asset used as security may be repossessed or otherwise at risk if you do not repay the debt secured on it. Personal guarantees may be required. Development lending is commonly unregulated. Funding, future values and refinancing are not guaranteed.
What development finance can be used for
Development finance may support ground-up building, conversions or substantial refurbishment where the property and works fit a lender’s criteria. A short refurbishment project and a multi-unit new build may need different facilities.
We first establish the site, proposed use, planning position, work required and intended exit. If the funding is mainly for a short-term property purchase or light works, a bridging route may be more relevant.
Build a complete cost plan
The purchase price and contractor quote rarely describe the whole funding requirement. Set out when costs fall due and which costs will be met from your own funds. The lender’s facility may include interest or fees that reduce the amount available for works.
A realistic contingency and a route to meet overruns are essential. A loan cannot be assumed to increase if construction takes longer or costs rise.
Equity, cost and completed value
Lenders may look at the loan against the project cost and against the expected gross development value, as well as the initial security. These measures are different. The lender’s valuation may differ from your own appraisal or an agent’s estimate.
We will establish what equity you can contribute, when it is available and whether the facility needs additional security. High projected profit does not remove the need for cash to deliver the scheme.
How staged funding works
Construction funds may be released in stages as work progresses and agreed conditions are met. The lender can require a monitoring surveyor’s report, evidence of expenditure and confirmation that the remaining budget is sufficient.
Understand whether expenditure must be incurred before a drawdown, how requests are processed and the cash buffer needed between payments. The facility documents determine the actual release conditions; an indicative offer is not a promise of immediate access to the full loan.
Planning and the delivery team
A lender will need comfort on the planning and legal position and on the ability of the team to finish the project. Relevant experience, contractor arrangements, professional appointments, warranties and insurance can affect the assessment.
Tell us about conditions that remain outstanding, changes to the proposed scheme and any work already started. Specialist planning, legal and construction advice sits alongside the finance process.
Agree a credible repayment strategy
A development loan normally needs a defined exit, such as the sale of completed units or a suitable longer-term refinance. Build in time for completion, legal sign-off, marketing and the lender’s release requirements.
Stress-test lower sale prices, slower sales and higher refinance costs. If the exit depends on rental borrowing, assess that route early. Completion of the building does not itself ensure another lender will refinance it.
What to send for an initial assessment
We can start with a concise project summary, then request further evidence securely. We will explain likely information gaps and the conditions that need resolving before an application can progress.
Important information
Any property or asset used as security may be repossessed or otherwise at risk if you do not repay the debt secured on it. Personal guarantees may be required.
Most business-purpose development finance is not regulated by the Financial Conduct Authority. The regulatory position depends on the borrower, security and purpose and must be checked for the case. All finance is subject to lender assessment, valuation, legal work and facility conditions. Cost overruns, delays and changes in value can put your equity at risk.
Frequently Asked Questions
Can development finance fund all project costs?
The available amount depends on the lender, valuation, project and your circumstances. An equity contribution and cash for excluded costs or contingencies may be needed. Full funding should not be assumed.
Do I need planning permission before applying?
The planning position affects the available route. Tell us what permissions and conditions are in place; a lender may require specific approvals before funding or drawdown.
Are construction funds released in one payment?
Often they are released in stages, subject to the facility’s conditions and progress checks. You need to understand the timing and any expenditure you must meet first.
Can a first-time developer obtain finance?
Some proposals may be considered, but experience, team capability, equity and the scheme will matter. Acceptance and terms cannot be guaranteed.
What happens if the project takes longer?
Additional interest and costs may arise and the facility may need an agreed extension. An extension is not automatic, so raise changes early and retain a realistic contingency.
Can I refinance instead of selling?
It may be possible if a suitable lender will accept the completed property and the borrowing is affordable. Refinance should be assessed as part of the exit plan and is not guaranteed.
Speak to TLA Finance
Discuss your project budget, available funds, construction timetable and repayment plan.
Discuss your development project
Provide your basic contact details and select your preferred time and method of contact. We will explain the next steps and how to supply supporting documents securely.
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