🏗️ Ground-Up Development Finance

Ground-up development finance funds the construction of new residential or mixed-use buildings from the ground up — typically from the point of land acquisition through to practical completion. Funds are drawn in stages as the build progresses, with each drawdown certified by a monitoring quantity surveyor (QS) appointed by the lender.

How It Structures

• Day 1 advance covers the land or site purchase (typically 60–70% of land value or cost)
• Build costs drawn in arrears as stages complete — typically in 4–8 tranches
• Interest rolled up throughout the build period and settled on exit
• Term typically 12–24 months depending on scheme complexity

Key Metrics Lenders Use

• LTGDV — total loan as a % of completed development value. Most senior lenders cap at 65–75%
• LTC — total loan as a % of total costs (land + build + fees). Typically up to 85%
• Profit on GDV — lenders want to see a minimum 15–20% profit margin on GDV