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Stretch Senior Development Finance

Stretch Senior Development Finance

by | May 31, 2019

Stretch Senior Loans

Our Stretch senior development finance loans offer a diverse range of funding solutions designed to support and expand your development efforts. We provide financial backing covering up to 90% including rolled-up interest. Additionally, we offer financing up to 75% of the gross development value, when accounting for rolled-up interest. Our offered rates are negotiable based on the complexity and debt quantum of any individual project.

We offer senior loans ranging from £1,000,000 to £15,000,000, providing the flexibility needed to match your project’s scale and requirements. Our financing solutions cater to projects with timelines of up to 24 months, accommodating both large-scale developments and smaller ventures. Whether you’re embarking on a major development or a more modest project, our stretch senior loans are designed to provide the robust financial support necessary to advance your goals and bring your vision to life.

24 months

Loan terms up to 24 months

90%

​Up to 90% loan to cost including interest

£15,000,000

Loans from £1,000,000 to £15,000,000

two men stood discussing large brick property
Farmhouse Scheme in Cambridge (CBILS)
White brick and wooden house

What Exactly Is Stretch Senior Debt?

At first glance, the concept of a stretch finance loan, sometimes referred to as an over advance loan, might seem intricate, but its essence is quite straightforward. These specialised financing options are crafted by experts in the realm of property development finance, such as BLG, to provide property developers with access to a higher level of financial support.

Stretch senior debt distinguishes itself by typically offering a more substantial loan-to-cost or loan-to-value ratio than what is conventionally available from mainstream lenders and banks. For instance, while traditional banks might extend loans covering up to 60% of project costs, our stretch senior loans are accessible for up to 90% of project costs, with the potential to reach 90% when considering rolled-up interest. Another perspective on stretch senior development finance is that it can encompass up to 65% of the Gross Development Value, potentially increasing to 75% when rolled-up interest is factored in.

In practical terms, this means that while conventional banks and high street lenders may expect property developers to inject cash equivalent to 40% of project costs into the venture, we offer the flexibility for developers to contribute as little as 13% of their project expenses when incorporating rolled-up interest. This approach empowers developers to leverage their resources more efficiently and optimize their capital allocation for their development projects.

Share Your Project Details And Give Us A Call

If you’re interested in finding out if a development loan could work for you, simply share some details and get in touch. Our team of property finance experts will have a chat with you to see if we can help.

We’ll Find The Right Solution Together

Tell us about your project, and using our knowledge and experience, our team will work with you to create a customised solution that fits your goals. We’ll also walk you through the process, so you understand the next steps.

Get A Quick Answer

We’ll provide you with our heads of terms quickly. If they meet your needs, just send us a full application to proceed. From there, a credit review will take place, leading to an offer backed by our commitment.

Funds Are Released After Due Diligence

Once our verification process is complete (typically 6-8 weeks depending on the complexity), you can expect to receive your funds. Now you can get back to what you do best while we take care of the financing.

​What Are The Key Features Of Stretched Senior Debt?

One of the primary features of Stretched Senior Debt is the higher loan-to-value (LTV) ratio it offers. While traditional senior debt loans typically have an LTV ratio of around 60% to 65%, Stretched Senior Debt can provide financing up to 70% LTV or even higher. This increased leverage allows developers to secure more funds for their projects and reduces the amount of equity they need to contribute.

What Is Senior Development Finance Used For?

Our stretch senior debt can be used for a wide range of residential developments, including houses, apartments, new builds, and conversions. Our development finance solutions extend to mixed-use schemes, accommodating projects in both urban and rural locations across the UK. We aim to support developments in areas with strong demand, enabling you to capitalise on market opportunities. Whether you’re planning a small-scale project or a large-scale endeavour. There are no restrictions on the number of units you can develop. Our stretch senior finance is tailored to meet the diverse needs of residential developers, providing the necessary funding to bring your projects to fruition.

What Are The Stretched Senior Debt Lending Criteria?

Development Demand: One crucial criterion is the location of the development project. Lenders look for projects in areas with clear sales demand, ensuring that there is a market for the developed properties. Factors such as population growth, economic indicators, market trends, and demand for real estate in the area are assessed to determine the viability of the project.

Loan-to-Cost Ratio: Lenders consider the loan-to-cost (LTC) ratio when evaluating Stretched Senior Debt applications. The LTC ratio represents the loan amount as a percentage of the total project cost, including land acquisition, construction costs, and other related expenses. Lenders typically have their own predetermined limits for the LTC ratio, and the proposed loan amount must fall within this range to be eligible for Stretched Senior Debt financing.

Why Is Stretch Senior Development Finance Helpful For Property Developers?

Property developers and house builders find this higher leverage lending helpful as it means they do not need to provide such a large percentage of funding themselves. This not only helps with cash flow, for many it allows the opportunity to build more than one development project at a time.

What Information Would I Need To Provide?

  • Applicant company name and details
  • Directors & significant shareholders details
  • Full site/property address details
  • Copy of the planning consent
  • Financial appraisal and cash-flow
  • Detailed build costs
  • Details of the professional team such as architect and structural engineer
  • Procurement method such as construction management
  • Any comparable sales information to support the proposed GDV

A senior stretch loan is quick, efficient, and convenient, giving you access to more finance while only dealing with one lender.

A senior stretch loan is quick, efficient, and convenient, giving you access to more finance while only dealing with one lender. We also offer build to let and mezzanine development finance all for residential projects. Contact us today to be put in touch with your local BLG Regional Director who will be happy to discuss your property development funding requirements.

Contact Us Today

    Projects Funded With Stretch Senior Loans From BLG​

    "Bakery Row" development, Chichester
    Old Bakery Row Chichester

    WHAT OUR CUSTOMERS SAY ABOUT US

    "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

    “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.”

    Tell us how we can help you.

    Bridging Loans

    Bridging Loans

    by | May 28, 2019

    Bridging Loans For Property Developments

    Bridging loans serve as a valuable financing tool for property developers embarking on new development ventures. These short-term loans offer a quick and flexible solution, providing the necessary capital to cover initial costs such as land acquisition, planning permissions, and early construction expenses. This financial support allows developers to kickstart their projects without delay, ensuring that progress can begin immediately.

    By securing a bridging loan, developers can maintain momentum while they arrange more permanent, long-term financing solutions. This can be particularly advantageous in competitive markets where opportunities need to be seized quickly. Furthermore, bridging loans can be tailored to meet the specific needs of each project, offering a customised approach that aligns with the unique timeline and financial requirements of the development.

    They not only facilitate the early stages of property development but also enhance a developer’s ability to act swiftly and efficiently. This makes them an essential component in the toolkit of any property developer looking to navigate the complexities of project financing with confidence and agility.

     

     

    12 months

    Loan term is typically up to 12 months but longer term can be considered

    75%

    ​Loan to Values generally up to 75% including interest

    £10,000,000

    Loans from £500,000 to £10,000,000
    Bridging Loans
    Brewery Meadows building
    Multiple houses under development

    Typical Guidelines

    • Loans from £500k to £10m
    • Generally, loan term up to 12 months but longer term can be considered
    • Loan to Values considered on a case-by-case basis but generally up to 75% including interest
    • Rates negotiable on complexity and debt quantum based upon a 5% annual BLG base rate
    • Existing projects that have reached practical completion

    As a leading lender specialising in property finance, our expertise encompasses a wide range of funding options, including residential and commercial development finance and GGS funding supported by the British Business Bank. Contact a BLG team member today to find out more on how BLG can help your next project.

    Typical Uses for Bridging Loans

    Our Bridging Loans offer a quick and flexible solution, providing the necessary capital to cover initial costs such as land acquisition and planning permissions ahead of the construction and development of new buildings. This financial support allows developers to kickstart their projects without delay, ensuring that progress can begin immediately.

    Throughout the housebuilding lifecycle, BLG provides a high level of support to its clients, including ongoing advice and guidance on market trends, financing options, and exit strategies.

    BLG offer bridging loans for the following purposes:

    • To acquire a new development site. This can include financing for land acquisition, site preparation, and planning permissions. We can even potentially help if the site has a limited or imperfect planning consent, working with developers to find creative solutions to financing challenges.
    • To release funding from an existing transaction to make new investments. BLG can provide finance solutions to help developers release funds from existing projects and reinvest them in new opportunities.
    • To release funds on completed developments for cashflow or other business needs. We can provide development exit loans to help developers release funds from completed developments for cashflow or other business needs. This can help developers to reduce finance costs, manage their cashflow more effectively, and fund their next project.
    • BLG can provide short to medium-term finance solutions for commercial or other property assets. This can help businesses to meet their funding requirements and manage their cashflow more effectively.

    ​

    Contact Us Today

      Projects Funded With Bridging Loans From BLG​

      No post found

      WHAT OUR CUSTOMERS SAY ABOUT US

      "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

      “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.”

      Tell us how we can help you.

      Student Accommodation Development Finance

      Student Accommodation Development Finance

      by | Apr 9, 2025

      Supporting Purpose-Built Student Housing Concepts

      Demand for high-quality student housing continues to rise across the UK, and developers are increasingly stepping in to meet the needs of a growing and more discerning student population. At BLG, we offer flexible, specialist student accommodation development finance to help fund the construction, refurbishment or conversion of student-focused schemes in key university cities and towns.

      Whether you are creating purpose-built student halls or converting an existing property, our student accommodation development loan options are designed to support you every step of the way, from site acquisition to project completion. Get in contact with our team today to find out how we can assist you – tell us about your plans and we’ll quickly let you know how we can help – with an expected funding release of between 6 to 8 weeks.

      24 Months

      Loan term up to 24 months

      70%

      Lending up to 70% Loan to Gross Development Value including interest

      £15,000,000

      Loan from £1,000,000 to £15,000,000

      Rendering of a courtyard area of a series of townhouses

      Student Hall Development Finance Conditions

      Our student accommodation development loan offer:

      • Lending to 70% Gross Development Value
      • Loans from £1m to £15m.
      • Lending for build duration typically up to 24m, but longer terms can be considered.
      • Your monthly interest can be added to the loan, so you have no payments during the loan term.
      • Commercial bridge to enhance / obtain planning
      • Occupied or vacant

      We understand the unique challenges of student accommodation developments, from navigating planning approvals to managing construction timelines. That’s why our loans offer competitive LTVs and flexible interest arrangements, giving you the financial certainty and breathing room needed to successfully complete your projects without cash flow pressure.

      Your Student Accommodation Development Finance Application

      Student accommodation development funding provides developers with finance specifically for schemes aimed at purpose-built student accommodation (PBSA). These developments often involve large-scale builds, tight timelines and careful consideration of lettings cycles and academic year occupancy. That’s why it’s essential to partner with a lender who understands both the sector and the risks. BLG Development Finance has years of experience in financing the construction of student housing including purpose-built student accommodation, high-spec communal living spaces and hybrid mixed-use developments with a strong student focus.

      • New-build student accommodation blocks – Finance for ground-up developments purpose-built for student living, from boutique schemes to large-scale PBSA projects in key university locations.
      • Refurbishment or conversion of existing buildings – Funding to repurpose offices, hotels or older properties into modern, compliant student housing.
      • Mixed-use schemes with a student residential element – Flexible finance for developments that combine student accommodation with retail, commercial or other residential uses.
      • Purpose-built student halls with individual or cluster rooms – Support for PBSA projects offering en-suite studios or shared apartments, often with communal amenities like study areas, gyms and lounges.

      Share Your Project Details And Give Us A Call

      If you’re interested in finding out if a development loan could work for you, simply share some details and get in touch. Our team of property finance experts will have a chat with you to see if we can help.

      We’ll Find The Right Solution Together

      Tell us about your project, and using our knowledge and experience, our team will work with you to create a customised solution that fits your goals. We’ll also walk you through the process, so you understand the next steps.

      Get A Quick Answer

      We’ll provide you with our heads of terms quickly. If they meet your needs, just send us a full application to proceed. From there, a credit review will take place, leading to an offer backed by our commitment.

      Funds Are Released After Due Diligence

      Once our verification process is complete (typically 6-8 weeks depending on the complexity), you can expect to receive your funds. Now you can get back to what you do best while we take care of the financing.

      Purpose-Built Student Housing Backed by Expert Finance

      Student housing is a specialist sector, and we treat it that way. We understand the importance of completing projects in time for the academic intake, the significance of pre-let agreements and the role of university partnerships in shaping demand.

      We aim to make your application and approval process as smooth as possible, especially for developers new or inexperienced in the student sector. Our student accommodation development loans support developers in delivering the kind of high-spec, well-located and thoughtfully designed homes that modern students demand.

      Whether you’re planning a flagship PBSA scheme or a smaller conversion project, we’re here to make your finance journey faster, simpler and more reliable. Get in touch with our specialist team today to explore how our student hall development finance solutions can help you build the next generation of student living.

      Contact Us Today

        Student Accommodation Development Funding FAQs

        What is student accommodation development finance?

        Student accommodation development finance is a type of property development loan specifically designed to fund the construction, conversion or refurbishment of buildings intended for student housing. This includes purpose-built student accommodation (PBSA) and mixed-use developments with student elements.

        Do you finance both new builds and conversions?

        Our student accommodation development finance covers ground-up construction, as well as the conversion or refurbishment of existing buildings such as offices, hotels, or former residential properties.

        Can I apply for a student accommodation development loan without a pre-let agreement?

        We will consider both pre-let and speculative developments. While pre-let agreements can strengthen your application, we assess each project individually based on location, demand and your track record.

        Is student hall development finance suitable for first-time developers?

        Yes, we’re open to supporting first-time or less experienced developers, especially if you have a strong professional team and a clear exit strategy in place.

        Do you fund student accommodation in smaller university towns or only major cities?

        We consider schemes in both large cities and smaller university towns, provided there’s clear, evidenced demand. Factors like student population growth, local supply gaps and university expansion plans all play a role in our assessment.

        WHAT OUR CUSTOMERS SAY ABOUT US

        "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

        “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.”

        Tell us how we can help you.

        Ground Up Development Finance

        Ground Up Development Finance

        by | Apr 9, 2025

        Commercial & Residential Development Funding Built from the Ground-up

        Whether you are embarking on your first ever scheme as an inexperience developer or your next large-scale build, securing the right funding is essential to bringing your vision to life. With ground up development finance, we can help developers who are specifically targeting those opportunities that begin at the very start and want to build a new residential or commercial property from scratch. 

        From acquiring a vacant plot to completing a fully finished housing scheme, our ground up development loans will provide you with the capital and flexibility you will need at every stage of your journey. Reach out to a member of our team today to discuss your project in further detail and see how we can help you realise your plans for a completely new-build property development.

        24 Months

        Loan term up to 24 months

        70%

        Lending up to 70% Loan to Gross Development Value including interest

        £15,000,000

        Loan from £1,000,000 to £15,000,000

        Ground Up Residential Development Conditions

        Our ground up property finance offer:

        • Lending to 70% Gross Development Value
        • Loans from £1m to £15m.
        • Lending for build duration typically up to 24m, but longer terms can be considered.
        • Your monthly interest can be added to the loan, so you have no payments during the loan term.
        • Commercial bridge to enhance / obtain planning
        • Occupied or vacant

        Ground-up developments demand more than just funding, they require a lender who understands the full lifecycle of a project, from land acquisition through to exit strategy.

        At BLG, we back experienced and emerging developers alike with agile, milestone-aligned funding and deep sector insight. Whether you’re tackling complex groundwork, phased delivery or sales-led exit planning, we’re structured to support your momentum from foundation to finish.

        Your Ground Up Development Finance Application

        Ground up development finance is all about new beginnings, and so are we at BLG. We take a completely bespoke approach, offering residential developers clear, structured loans that align with their build schedules and sales strategies. This type of development comes with its own set of risks and capital demands – it’s not a conversion or refurbishment. It’s a full-scale new build, often starting from raw land or a cleared site.

        • New build houses, flats or mixed-unit sites – Whether you’re developing a series of high-quality homes or a mix of residential and commercial spaces, our finance is designed to support your entire build from the ground up.

        • Multi-phase developments – For larger projects that are built in stages, we provide flexible funding that aligns with each phase’s progress, ensuring you have the capital you need to keep the project moving smoothly.

        • Single dwellings or multi-unit residential schemes – Whether it’s a single family home or a larger residential block, we offer tailored financing to support developments of all sizes and complexities.

        • Sites with or without planning in place – We understand that many developments begin with raw land or an unapproved site. We can help fund projects at various stages, whether you’ve secured planning permission or are in the process of seeking it.

        Additionally, we offer ground up commercial development finance for projects that incorporate commercial elements or are entirely commercial in nature. This includes mixed-use developments, retail spaces, or office buildings. Whatever your vision, speak to our team for bespoke funding options tailored to your project’s needs.

        Share Your Project Details And Give Us A Call

        If you’re interested in finding out if a development loan could work for you, simply share some details and get in touch. Our team of property finance experts will have a chat with you to see if we can help.

        We’ll Find The Right Solution Together

        Tell us about your project, and using our knowledge and experience, our team will work with you to create a customised solution that fits your goals. We’ll also walk you through the process, so you understand the next steps.

        Get A Quick Answer

        We’ll provide you with our heads of terms quickly. If they meet your needs, just send us a full application to proceed. From there, a credit review will take place, leading to an offer backed by our commitment.

        Funds Are Released After Due Diligence

        Once our verification process is complete (typically 6-8 weeks depending on the complexity), you can expect to receive your funds. Now you can get back to what you do best while we take care of the financing.

        Build from the Ground Up with BLG

        With decades of experience supporting developers across the UK, our team at BLG Development Finance doesn’t just provide capital, we provide partnership to help you build literally and financially.

        We understand the pressures, timelines, and complexities involved in new-build projects, and we structure our loans to provide the capital and flexibility needed at each stage of the development journey.

        If you’re planning a residential or commercial development from scratch, we’re here to support you in turning your vision into reality. With BLG’s flexible financing, you’ll have the financial resources to navigate the building process smoothly, while knowing you have a partner who understands your goals. Get in touch with our team today to discuss how ground up residential development finance can help you bring your land to life and create lasting value.

         

        Contact Us Today

          Ground Up Residential Property Development FAQs

          What is ground up residential development finance?

          Ground up residential development finance is a type of funding used to finance the construction of new residential properties, starting from the very foundations and building upwards. It typically covers land acquisition, construction costs, and associated project expenses. This type of finance is specifically for developers looking to create brand new homes or residential schemes.

          Can BLG support first-time residential developers?

          We offer ground up residential development finance to both experienced developers and those embarking on their first project. While experience is beneficial, we assess each application individually and provide support based on the specific characteristics of your project.

          Can ground up development funding be used for mixed-use projects?

          We can provide finance for mixed-use developments that include residential units. If your project combines residential and commercial elements, we’ll tailor your loan to suit the requirements of both aspects. Please speak with our team for more specific details on financing mixed-use schemes.

          Can BLG provide finance for developments outside of residential properties?

          in addition to ground up residential development finance, we will also offer ground up development funding for commercial projects. If your project involves both residential and commercial elements, or if you’re interested in a purely commercial scheme, we can discuss tailored finance options for your needs.

          Do I need planning permission before applying for ground up development finance?

          While having planning permission in place is ideal, we can still consider applications for sites that are in the process of securing planning approval. If you don’t yet have planning, we may still be able to support your funding, particularly if you have a clear plan and the project is well-structured. Speak with us to discuss your specific situation.

          WHAT OUR CUSTOMERS SAY ABOUT US

          "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

          “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.”

          Tell us how we can help you.

          Permitted Development Finance

          Permitted Development Finance

          by | Apr 9, 2025

          Flexible Finance for Permitted Developments

          Permitted development rights have opened exciting new opportunities for developers, but securing finance for these types of projects can sometimes feel less straightforward. At BLG, we work with you to clearly communicate the unique characteristics of permitted development loans and offer tailored funding solutions that help you make the most of them. We provide specialist support for developers and intermediaries working on schemes that fall under permitted development rights, helping to unlock value with speed and clarity.

          Our permitted development finance options are designed specifically to support these time-sensitive, opportunity-driven projects. Using our streamlined process and framework, we enable developers to act fast and take advantage of valuable planning exemptions, without compromising on quality or support. Contact our team today to learn more about how we can help you.

          24 Months

          Loan term up to 24 months

          70%

          Lending up to 70% Loan to Gross Development Value including interest

          £15,000,000

          Loan from £1,000,000 to £15,000,000

          Brick and wood panelled new build property

          Permitted Development Finance Conditions

          Our permitted development property finance offer:

          • Lending to 70% Gross Development Value
          • Loans from £1m to £15m.
          • Lending for build duration typically up to 24m, but longer terms can be considered.
          • Your monthly interest can be added to the loan, so you have no payments during the loan term.
          • Commercial bridge to enhance / obtain planning
          • Occupied or vacant

          With extensive experience across all PD use classes, we understand the nuances that can affect viability, from prior approval risks to structural limitations in commercial-to-resi conversions.

          Our funding is built around speed and certainty, allowing developers to maximise uplift and minimise delays. We don’t just assess planning; we look at the full picture – location, end value and execution, to back projects that unlock real value under permitted development rights.

          Your Permitted Development Funding Application

          Permitted development finance offers developers short to medium-term funding for projects that do not require full planning permission thanks to the government’s permitted development rules. These schemes often involve the conversion of commercial buildings into residential units or the refurbishment of existing residential layouts. These developments come with their own sets of challenges – from understanding local planning constraints to navigating tight timelines.

          At BLG, we are experienced in assessing and funding these types of projects, offering more than just finance but also insight, clarity and confidence throughout the entirety of the process. Whether you’re working with Class MA, Class G or other permitted rights, we’ll help shape a funding solution that supports your vision.

          Our permitted development property finance is suitable for a wide range of PD-convertible buildings including:

          • Office-to-residential conversions – ideal for developers transforming disused or under-occupied office buildings into much-needed housing under Class MA rights.
          • Light industrial to residential schemes – including the redevelopment of storage or workshop spaces into high-quality homes where Class PA or similar PD rights apply.
          • Retail units to residential – for projects repurposing vacant high street shops into residential accommodation or mixed-use developments.
          • Mixed-use reconfiguration – combining residential and commercial elements, with flexibility to reshape internal layouts while staying within permitted development limits.
          • PD schemes with or without prior approval – we support projects at various stages, whether you’ve already secured prior approval or are planning to apply.

          Share Your Project Details And Give Us A Call

          If you’re interested in finding out if a development loan could work for you, simply share some details and get in touch. Our team of property finance experts will have a chat with you to see if we can help.

          We’ll Find The Right Solution Together

          Tell us about your project, and using our knowledge and experience, our team will work with you to create a customised solution that fits your goals. We’ll also walk you through the process, so you understand the next steps.

          Get A Quick Answer

          We’ll provide you with our heads of terms quickly. If they meet your needs, just send us a full application to proceed. From there, a credit review will take place, leading to an offer backed by our commitment.

          Funds Are Released After Due Diligence

          Once our verification process is complete (typically 6-8 weeks depending on the complexity), you can expect to receive your funds. Now you can get back to what you do best while we take care of the financing.

          Maximise the Value of Permitted Developments

          Permitted development rights offer speed and opportunity, and your finance should match that. We’ll support your ambitions to seize the moment with fast, flexible permitted development finance backed by expert support.

          At BLG Development Finance, we specialise in providing permitted development funding that supports you every step of the way. Whether you’re converting office space into high-demand apartments, transforming disused industrial units into modern residential properties or reviving neglected mixed-use buildings, our team is committed to providing the funding solutions you need to move forward with confidence.

          Contact us today and discover how our permitted development property finance can turn your vision into reality. With the right financial backing, we can help you complete your project on time, within budget and with the confidence to move on to the next opportunity.

           

          Contact Us Today

            Development Finance for Permitted Developments FAQs

            What is permitted development finance?

            Permitted development finance is a short-term funding solution for projects carried out under permitted development rights. These are schemes that do not require full planning permission, such as converting office buildings into residential units.

            Can you fund permitted development schemes without planning permission?

            Yes – as long as your project falls under permitted development rights and you have the necessary prior approval, full planning permission is not required.

            What is the exit strategy for permitted development finance?

            Your exit strategy could be the sale of the completed units or refinancing onto a longer-term facility. A clear and realistic exit plan is an essential part of your application.

            Can I use permitted development finance for a part-conversion or refurbishment?

            We can fund part-conversions and refurbishments where they fall under permitted development rights, including internal works that improve layout, add value or modernise the property.

            Can you be refused permitted development?

            Although permitted development rights allow you to bypass full planning, your project can still be refused if it doesn’t meet the specific criteria set out by legislation. Common reasons include non-compliance with size limits, design standards or local authority concerns raised during the prior approval process.

            WHAT OUR CUSTOMERS SAY ABOUT US

            "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

            “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.”

            Tell us how we can help you.

              Quick Enquiry?

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