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Oakmead Finance Ltd

Capital and Debt Advisory

Home Development Finance Service

Development Finance

  • Funding up to 100% of costs with additional security
  • Funding up to 100% net loan to costs with joint venture finance
  • Funding up to 90% net loan to costs with mezzanine loan finance
  • Terms from 3-36 months
  • Flexible approach
  • No experience required

One of the fastest-growing areas of funding, development finance can often appear complex. Developments can range from land purchases and ground upbuilds, through to heavy and light refurbishments and mezzanine loans.

Our team has experience working with both residential and commercial property developers to structure the best possible funding solutions for their projects. Regardless of size or location, we can assist and have previously been involved in transactions at varying degrees of complexities, from single-unit conversions, right through to major multi-unit developments.

Development of Finance Solutions

Senior debt

Senior debt

Typically development finance facilities will advance between 65% and 80% of the cost of development. This is arranged through a senior debt facility (ie the core borrowing for a project) and secured by a first charge on the development. However, developers may not have the equity required for or wish to spread their cash among numerous projects. In this instance, we can look to arrange a facility up to 80% of GDP or a net loan of 90% of costs by blending in a top-up mezzanine loan facility.



Mezzanine loan finance provides a top-up layer of financing, sitting above the senior debt provider but under the developer’s equity. Typically this funding us secured by a second charge and allows for the loan to cost to be increased for debt funding up to 90% net loan to cost of the development or even 95% with new ‘super’ mez facilities. Mezzanine loans can be provided from an additional debt provider and the money will usually be used at the outset to minimise the developer’s initial contribution towards the purchase.



Equity Finance or Joint Venture Finance provides experienced housebuilders and developers with up to 100% loan to cost. Investment partners will typically invest their money through shares in a specially created corporate vehicle (SPV) or, more commonly, through a profit share agreement. We have access to a number of High Net Worth individuals, family offices and private equity firms who are keen to lend their money to experienced developers.

Summary Points

  • Funding is available to all developers regardless of experience
  • Lending facilities can be structured to leverage the project to minimise the developer’s contribution
  • Interest rates are simple, non-compounding which dramatically decreases the overall cost
  • Loan facilities are available from £500k to £100m
  • Terms can be between 3 months and 36 months
  • Loans are available for a multitude of developments

Key Features

  • Development finance can lend against the gross development value (GDP) and the total project costs.
  • Borrowers can spread their capital further, minimise their risk and maximise their returns by leveraging the project
  • Leverage is available through senior, stretch senior, mezzanine and/or equity/joint venture investment.
  • Facilities are available for experienced and non-experienced developers who are building within the Uk.

Our Testimonials

How Oakmead Finance Can Help

Oakmead finance is a trusted specialist in property development finance having helped source and arrange development finance facilities from £250k to £94m.

We have experience in arranging and structuring development finance facilities up to 90% loan to costs including senior debt, mezzanine loans, bridging loan finance and equity finance for our clients. Contact us to discuss your requirements and explore the options available to you.

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