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development-iconDevelopment Finance

Fast, Reliable,  Flexible Development Finance 

Ground-up development, or heavy refurbishment West One provide lending options for experienced property developers seeking funding for residential-led schemes. 

By building strong, long-term relationships, we provide the certainty of finance you can trust.

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Development Finance: Product Range Criteria

Heavy Refurbishment - Development Finance

Heavy Refurbishment

For projects where heavy works are required to an existing building

  • Residential led schemes (commercial aspect must be less than 35% of value)
  • PBSA schemes considered
  • Funding up to 65% LTGDV and 85% LTC
  • Minimum loan size £1m
  • Maximum loan size £30m
  • Initial loan-to-value up to 70%
  • Funding 100% of build costs
  • Lending across England & Wales
  • Experienced developers - minimum of 2 successful projects prior
  • Developer's equity contribution provided at the start of the facility
Ground-up development

Ground-Up Development

For projects which are new build schemes developed from ground up

  • Residential led schemes (commercial aspect must be less than 35% of value)
  • PBSA schemes considered
  • Funding up to 65% LTGDV and 85% LTC
  • Minimum loan size £1m
  • Maximum loan size £30m
  • Initial loan-to-value up to 70%
  • Funding 100% of build costs
  • Lending across England & Wales
  • Experienced developers – minimum of 2 successful projects prior
  • Developer’s equity contribution provided at the start of the facility
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Completed Development Finance Projects

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Why West One?

  • Certainty of finance with full autonomy over our credit decisions
  • Fast decisions & swift 24-hour drawdowns
  • Dedicated Lending Director from start to finish

Key Product Features

  • Funding up to 65% LTGDV and 85% LTC
  • Loan sizes between £1m–£30m
  • Funding 100% of build costs
  • Developer’s equity contribution provided at the start of the facility
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Let us help you get started

To talk to us about what we can do for you and your client or simply learn more about what West One has to offer, get in touch today.

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Introduce business to West One

If you would like to discuss a case, register as an introducer or learn more about what West One has to offer, simply complete the short enquiry form below and a member of our broker support team will get in touch.

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Frequently Asked Questions

Criteria
What are the key features of West One Development Finance?
  • Residential led schemes (commercial aspect must be less than 35% of value)
  • PBSA schemes considered
  • Loans from £1,000,000–£30,000,000
  • Loans from 1830 months
  • Up to 65% of the Gross Development Value Funded
  • Up to 85% Loan to Cost Funded
  • Up to 70% of the Current Value Funded
  • 100% of Build Costs Funded
  • 100% of Professional Fees Funded
  • 100% of Rolled Up Interest and Lender Fees Funded
  • Project Costs are Funded in Arrears via Independent Monitoring Surveyor Reports
The Basics
What is Development Finance?
Development Finance is a form of short-term funding, typically provided over 1830 months to assist property developers with the purchase and construction costs of their next project.

These loans are normally used for ground-up construction, conversion or refurbishment of residential, commercial or semi-commercial properties.
What is Mezzanine Finance?

West One only offers Senior Development Finance (1st charge) up to 65% LTDGV and 85% LTC, however we will consider applications where Mezzanine Finance is being used.

When a developer lacks sufficient cash to cover project costs which aren’t covered by the Senior Finance, they could seek Mezzanine Finance which is a loan secured via 2nd charge.

Mezzanine Finance can take a client’s contribution from 15% of project costs down to 10% of project costs as they typically fund up to 75% LTGDV and 90% LTC.

Who do I need to speak to in the first instance?

If you are a broker with an existing relationship with a member of the Development Finance team please use their contact details otherwise, you can contact the team using the below details.

Phone - 0333 123 4556
Email – Developmentfinance@westoneloans.co.uk

Do you need to be an experienced developer in order to apply for a development loan?
Yes, we require applicants for development loans to have a minimum of two developments completed similar to the proposed scheme.
Application Process
What information do I need to provide about my project?
  • Details of the scheme
  • Development appraisal breakdown (i.e. build costs, contingency, professional fees, CIL/S106 & any other development costs)
  • CV detailing past experience
  • Full security address
  • Purchase Price/Market Value
  • Schedule of accommodation / GIA
  • Planning Status
  • Plans/drawings if available
Terms
What is Funding in Arrears and how does it work?

All West One Development Facilities are funded in Arrears.

Following the facility set up, the initial works on site must be funded by the developer.

In the following month, the West One appointed Independent Monitoring Surveyor (IMS) will visit the site to assess the works which has been completed along with all the relevant paperwork provided by the developer/contractor.

The IMS will then provide a report to West One, certifying the amount which they believe should be release against the works carried out by the developer/contractor to date. This is typically done monthly until the scheme has been fully developed.

With our facilities being Rolled up Interest, the developer does not have to worry about paying interest monthly and can concentrate their cashflow on progressing the development.

Interest is also only applied to the parts of the loan which have been drawn to date, meaning that if the developer completes the project only using a portion of the loan, they only get charged interest on that portion.

Can I get development finance even if I don’t have planning permission?

No – we will only complete a loan on the condition that full planning has been granted.