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Development Finance

Discover how development finance works, when to use it, and how it can help fund your next property project. Whether you’re building from the ground up, converting existing buildings, or completing a large-scale renovation, this guide covers it all.

What is Development Finance?

Development finance is a short- to medium-term funding solution designed to finance construction, renovation, or property development projects. It’s typically released in stages (known as “drawdowns”) as your project progresses, making it flexible and tailored to your build schedule.

This type of finance is ideal for:

  • New-build residential or commercial projects
  • Property conversions (e.g., office to residential)
  • Large-scale refurbishments or extensions
  • Mixed-use property developments
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Why Choose Development Finance

Property developers, investors, and builders use development finance to:

  • Access Large Sums Quickly – Borrow significant amounts based on your project’s value.
  • Stage Payments – Funds are released in phases as work is completed.
  • Maximise Cash Flow – Keep working capital free for other expenses.
  • Flexible Terms – Tailored repayment and drawdown schedules to suit your project.
  • Finance Big Projects – Suitable for developments traditional mortgages won’t cover.

When Should You Consider Development Finance?

Development finance is a strong choice when:

  • You’re undertaking ground-up construction or a major renovation.
  • You need short-term funding (usually 6–24 months).
  • You’re working on mixed-use or multiple-unit sites.
  • You want to increase property value quickly before refinancing or selling.
  • Traditional lenders won’t cover your project’s scale or complexity.

Tip: Always prepare a detailed business plan, costings, and exit strategy (sale or refinance) to secure the best rates.

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Types of Development Finance

Residential Development Finance

For housing projects, from single homes to multi-unit sites.

Commercial Development Finance

For building offices, retail units, or other commercial spaces.

Heavy Refurbishment Finance

For extensive renovations, structural changes, or conversions.

Bridging Development Loans

Short-term bridging-style funding for smaller or time-sensitive projects.

Step-by-Step: How to Secure Development Finance

Plan Your Project

Have clear cost estimates, planning permissions, and timelines ready.

Determine Your Funding Needs

Work out total costs, contingency funds, and how much you’ll contribute.

Find a Specialist Lender or Broker

Use a development finance expert to access specialist lenders.

Get a Valuation

Lenders assess the Gross Development Value (GDV) of your project.

Apply for Finance

Submit your detailed proposal, including project costs and schedule.

Drawdown in Stages

Receive funds in tranches as each stage of construction is completed.

Repayment

Usually repaid by selling the development or refinancing.

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Contact AAI Financials today for personalized guidance on protection plans that secure your future and loved ones.

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