Applying for Development Finance? Here’s what lenders actually expect to see

Development finance is not just about the site.

It’s not just about the numbers.

And it’s certainly not just about leverage.

When lenders assess a development proposal, they are underwriting three core elements:

• The developer.
• The site.
• The structure.

The smoother these are presented, the faster and stronger the credit outcome.

Here’s what that really looks like.

The borrower / developer profile

Lenders first assess the person, or entity, delivering the scheme.

They will typically require:

• Development experience and track record
• CV or project history
• Net worth statement
• Asset & liability statement
• Credit profile
• Details of the professional team (architect, QS, contractor)
• Build contract type (JCT, fixed price, cost plus)
• If borrowing through a limited company or SPV, they’ll also review:
• SPV structure
• Shareholders
• Previous accounts
• Group structure (if applicable)

Why this matters:

Lenders don’t fund projects.

They fund teams.

Even first-time developers can secure funding, if supported by an experienced professional team and properly structured presentation.

The site & planning position

Clarity here builds confidence quickly.

Lenders will want:

• Site address
• Planning status (outline, full, reserved matters)
• Planning reference number
• Section 106 or CIL obligations
• Confirmation of site ownership
• Acquisition price (if not yet owned)

Planning risk is one of the biggest variables in development lending. The cleaner and more advanced the consent, the stronger the leverage options available.

The financial breakdown

This is where many applications fall short.

Development lenders expect a detailed financial picture, including:

• Purchase price (if applicable)
• Full build cost breakdown
• Professional fees
• Contingency allowance
• Gross Development Value (GDV) with comparables
• Sales agent appraisal
• Programme timeline
• Cash flow forecast

Headline numbers are not enough.

They need to see cost control, margin protection, and a realistic timeline.
A properly structured cash flow forecast often determines drawdown structure and monitoring requirements.

The loan structure

Finally, the funding strategy itself.

Lenders will assess:

• Total facility required
• Senior debt only or mezzanine involvement
• Equity contribution
• Interest roll-up or serviced
• Exit strategy (sales or refinance)
• Target completion date
• Exit clarity is critical.

Whether the plan is open market sales or refinance onto a term facility, the lender needs to see a credible, achievable route to repayment.

Where development applications often slow down

• Inconsistent cost schedules.
• Over-optimistic GDVs.
• Unclear equity positions.
• Incomplete planning documentation.

These create delays, and sometimes credit declines.

How we structure it at Signature Concierge

We don’t simply send information to lenders.

We build a credit narrative.

• We stress-test GDV assumptions.
• We review build contracts and contingency levels.
• We align the lender to the borrower’s experience level.
• We structure the facility around the exit from day one.

Development finance is about risk management, not just capital.

When presented correctly, even complex schemes can secure competitive funding.

Final Thought

If you're considering a development project this year, preparation is everything.

The strength of your submission often determines:

• Leverage
• Pricing
• Speed of approval
• Ongoing lender support

The right structure doesn’t just get the deal done.
It protects margin, preserves cash flow, and sets the foundation for your next scheme.