Property Development Finance Calculator
Size senior construction facilities from £250k to £50M+. Model maximum LTC and LTGDV constraints, forecast interest reserves, and audit scheme viability.
Securing Ground-Up or Conversion Development Debt?
Review our 90% LTC / 70% LTGDV Property Development Finance facility or read our Property Developers Finance Guide.
Property Development Finance & GDV Calculator
Structure senior development loans, forecast developer equity contributions, and model profit-on-cost returns.
Restricting Covenant: LTC (Loan to Cost)
Estimated Finance Charges (Rolled into Facility)
How Development Debt Is Disbursed & Repaid
Visualising the relationship between developer equity, senior bank drawdowns, and final sales revenue.
Phase 1: Equity First
Developer injects their required cash equity contribution upfront to fund the un-financed portion of site acquisition and initial planning costs.
Phase 2: Staged Build Drawdowns
Senior lender funds 100% of construction costs in monthly arrears. An Independent Monitoring Surveyor (IMS) certifies work on site before funds release.
Phase 3: Sales Waterfall
Sales proceeds first clear the senior debt principal and rolled-up interest. Remaining capital returns developer equity and unlocks gross development profits.
Frequently Asked Questions About Development Debt
What is the difference between Loan to Cost (LTC) and Loan to GDV (LTGDV)?
Loan to Cost (LTC) measures the loan advance against total project expenditure (land purchase, building costs, professional fees, and contingency), typically reaching 80% to 90%. Loan to GDV (LTGDV) caps total borrowing against the anticipated end value of the completed project, typically restricted to 65% to 70%. Lenders advance the lower of the two calculations.
How do staged drawdowns work in development finance?
Development funding is released in tranches aligned with construction progress. An initial advance funds site acquisition, and subsequent monthly drawdowns are released in arrears after an independent Monitoring Surveyor (IMS) inspects the site and certifies completed works.
Why do lenders require a minimum 20% Profit on Cost?
Property development carries execution risks including build cost inflation, contractor insolvencies, and sales price fluctuations. A 20% Profit on Cost margin acts as an equity buffer ensuring the scheme remains solvent and able to redeem senior bank debt even in adverse market conditions.
Are monthly mortgage payments required during property development?
No. Development finance facilities incorporate a rolled-up interest reserve within the total facility limit. Interest is calculated monthly on the drawn balance and capitalised, meaning the developer makes zero out-of-pocket interest payments until units are sold or refinanced upon completion.
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Contextual Guidance & Transaction Facilities
Ready to Appraise Your Development Scheme?
Submit your appraisal metrics to our senior debt underwriting desk. We match development schemes with 100+ institutional banks and debt funds.
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Commercial development finance arranged for corporate entities is not regulated by the Financial Conduct Authority (FCA). Your property or assets may be repossessed if repayments are not maintained.