From Landowner to Developer: How we secured a £3.5m facility for a first-time residential scheme

Stepping into property development for the first time can feel daunting, particularly when you’re seeking multi-million-pound funding in a cautious lending market.

Recently, we arranged a £3.5 million development facility for a first-time developer delivering 12 residential units in Leicester.

Development case study

On paper, this was a “higher risk” proposal.

In reality, it was a well-structured opportunity, it just needed the right positioning.

The background

Our client had owned the site for around 10 years. Originally acquired as a long-term investment, the land had increased steadily in value over time.

Recognising strong local housing demand, they secured full planning permission for:

• 12 residential units
• A mix of 3 and 4-bedroom homes
• Private parking and landscaped communal areas

The vision was clear. The planning was in place.

But there was one hurdle, no previous ground-up development experience.

And in development finance, track record matters.

The challenge

Most lenders favour experienced developers with multiple completed schemes. As a first-time borrower, our client faced:

• Increased scrutiny
• Lower leverage offers
• Higher equity expectations

The project required a £3.5m facility structured to cover build costs, professional fees, contingency and rolled-up interest.

Lenders needed comfort around:

• GDV
• Build cost verification
• Contractor experience
• A clear and credible exit strategy

This wasn’t simply about “finding a lender.”

It was about presenting the project properly.

How we structured it

Instead of focusing on what the client didn’t have (a track record), we focused on what they did have:

• Long-term land ownership at a low cost basis
• Strong personal net worth
• Conservative gearing requirements
• Full planning consent already secured
• An experienced professional team in place (architect, QS, contractor)

We positioned the borrower as new to development, but supported by an experienced delivery team.
We sourced a specialist development finance lender comfortable with first-time developers where fundamentals were strong.

The agreed structure:

• £3.5m total development facility
• Senior debt against land value and build costs
• Staged drawdowns with monitoring surveyor oversight
• Interest rolled into the facility to preserve liquidity

Crucially, this protected the client’s cash flow throughout the build.

The exit strategy

From day one, the exit was clearly defined:

• Open market sale of the 12 units
• Conservative GDV assumptions
• Option to refinance unsold units if required
• Providing a dual-exit approach gave comfort to both lender and borrower.

The outcome

The £3.5m facility allowed construction to commence without the client overextending personal capital.

More importantly, this project represents:

• The client’s official entry into residential development
• The start of a tangible track record
• A platform for future schemes and expansion

What began as passive land ownership has now evolved into an active development business.

What this demonstrates

First-time developers can secure substantial funding, when the structure, presentation and professional team are right.

Development finance isn’t just about leverage.

It’s about narrative, risk management, and lender alignment.

At Signature Concierge, we don’t just source funding.

We structure opportunity.

If you’re sitting on land with planning permission, or considering your first scheme, the conversation is often far more achievable than you think.