How To Successfully Get A Development Loan Application Approved

As lenders, we see a lot of deals. However not all proposals are presented to us with the full package of information, and this can often lead to delays.   It is very important for us to do as much up-front groundwork as is possible. Personally, I am not keen to present a deal through my credit committee with too many gaps as these may not be able to be filled in later or the answers prove unsatisfactory meaning the deal may get withdrawn much later in the process which is not good for anyone.

So what information is required to successfully get a deal approved? Much of this will be obvious, but it doesn’t hurt to spell it out. I have split these between the scheme and the borrower.  Firstly,  the development itself, the following should be provided:

  1. Financial Appraisal – This should be up to date and as detailed as possible.  It should ideally contain a full GDV breakdown on a unit-by-unit basis. It should also be the latest version as appraisals of course evolve.  It’s also important to keep your funder updated of any changes as they occur
  2. Valuation Evidence – This can take the form of agents providing pricing for the developer, or a previous valuation maybe undertaken for a different lender.  However, an appraisal without such back up information is not ideal
  3. Plans and Planning Consent – It is very helpful for the lender to provide a copy of the planning permission (if granted of course) and the correct plans.  Quite often there have been changes and the plans provided either don’t tie up with the appraisal or the consent.  This may cause delays. Lenders will always want to visit the site and so as much information that can be provided ahead of any site meeting is very useful. Planning Permission will have preconditions and if as a lender we know what these are then we can make sure they are covered in the appraisal
  4. Contractors – If the development is going to have a third-party contractor, then information on them including accounts is most helpful fully appreciating that this is often one area where decisions have not been finalised

In terms of the borrower then the following should be provided

  1. Full CV and details of previous developments – These should include previous lenders used by the developer. It doesn’t need to be great detail but enough to give the lender a feel for the experience of the developer.  If there are any photographs or brochures of completed schemes, then these are always gratefully received
  2. Financial Information – These will take the form of accounts in the case of Corporates and statements of personal assets and liabilities for directors. This is often the area that can be the most contentious but for a lender is key.  Again, as much information as is possible here as early into the process saves time later

Of course, we all understand that not everything here is going to be provided immediately, particularly personal financial information but the borrower needs to be prepared to provide this as soon as it is requested, so having it ready is going to help everyone

It is also really important, to be honest.  So, if there is some adverse credit in the past, or ongoing CCJ’s then please tell us.  Most of the time we can deal with these but if we find out later (and we will!) and this hadn’t been disclosed then there is a likelihood the deal may end there and then.

All the above is information readily available to the developer, and as early and detailed, that this can be provided the quicker the transaction can be approved.

Perry Kurash, Head of New Business, BLG Development Finance 


“We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

“As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

“I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

"From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

“I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

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