Mortgages forProperty Developers
Property Finance Structured Around the Realities Of Development
Property development rarely fits neatly within standard lending criteria. Whether you are acquiring a site, refinancing an existing development, funding construction or preparing for the next project, the structure of the finance can be as important as the cost.
At Henry Dannell, we work with property developers to understand the project, the wider financial position and the intended exit before approaching the lending market. Our role is to identify appropriate funding routes, present the opportunity clearly to lenders and structure borrowing around both the immediate requirement and the longer-term strategy.
Property and development finance is subject to individual circumstances, lender criteria and availability. Terms can change and finance is not guaranteed. A mortgage or other property-backed finance is secured against property. Failure to maintain repayments or comply with the terms of the facility may result in the property being repossessed. Commercial, investment and development finance may not be regulated by the Financial Conduct Authority. Appropriate legal and tax advice should be sought where relevant.
Finance Built Around The Project
Development finance is rarely just about securing sufficient capital. Timing, cash flow, leverage, build costs, contingencies, planning, sales assumptions and the proposed exit can all influence how a lender assesses an opportunity.
A well-structured application therefore needs to demonstrate more than the value of the property. It needs to give the lender a clear understanding of the development, the experience behind it and how the borrowing is expected to be repaid.
We can support developers seeking finance for:
- Residential property development
- Ground-up development
- Refurbishment and conversion projects
- Property acquisition
- Development exit finance
- Bridging finance
- Refinancing existing facilities
- Buy-to-let and portfolio finance
- Commercial and mixed-use property
- Capital raising against existing property assets
Availability and terms will depend on the individual project, borrower circumstances and lender appetite.
Looking Beyond The Headline Rate
The lowest headline rate does not necessarily represent the most appropriate development finance.
The overall structure can be equally important. Interest treatment, arrangement fees, loan-to-cost and loan-to-value requirements, drawdown arrangements, monitoring costs, covenants, exit fees and early repayment provisions can materially affect the commercial outcome.
There is also the question of flexibility. A facility that works on day one needs to remain appropriate if build times change, sales take longer than anticipated or the exit strategy evolves.
Our approach is to consider the facility in the context of the development as a whole, rather than treating the borrowing as a standalone transaction.
Presenting Complex Cases To Lenders
Experienced developers often have financial circumstances that do not fit a conventional lending model.
Existing property portfolios, multiple special purpose vehicles, retained profits, director remuneration, investment income, outstanding development facilities and complex ownership structures can all form part of the overall picture.
The challenge is often not simply finding a lender willing to provide finance. It is ensuring the case is presented to the right lender in a way that clearly communicates the borrower’s experience, financial position, project viability and proposed repayment strategy.
This reflects Henry Dannell’s broader approach to complex lending: understanding the financial position in detail and translating it into a proposition that lenders can assess effectively.
Funding The Next Opportunity
Property development does not always move according to convenient funding timelines.
An opportunity may arise while capital remains tied up in another project. A development may be approaching completion but not yet sold. Existing borrowing may need to be refinanced before the next acquisition can proceed.
In these circumstances, the wider asset and debt position can be important. Bridging, development exit finance, refinancing or capital raising against other assets may provide potential routes, depending on the circumstances.
Rather than looking at each facility in isolation, we consider how borrowing can be structured across the wider property strategy.
Development Exit And Refinancing
A strong mortgage application is not simply about finding a lender willing to accept your profession.
It is about presenting your financial circumstances accurately and placing the application with a lender whose criteria and underwriting approach are suited to them.
At Henry Dannell, we regularly work with professionals whose income or career circumstances require greater interpretation. Our approach is to bridge the gap between the information on paper and the underlying financial position, ensuring the application is structured with clarity and appropriate supporting evidence. This reflects our broader approach to complex professional borrowing.
Why Specialist Advice Matters
Property finance can involve high-value borrowing, short timescales and multiple moving parts. Lender appetite and underwriting can also vary considerably depending on the type of development and the experience and financial profile of the borrower.
At Henry Dannell, our role extends beyond identifying a product. We consider how the case should be structured, which lending route may be appropriate and how the proposition should be presented.
This strategy-led approach is consistent with our wider work across complex borrowing, where access to lenders is combined with detailed understanding of credit and debt structuring.
Speak To Henry Dannell
Whether you are acquiring your next site, funding a development, refinancing an existing facility or considering how to release capital for another project, we can help you assess the available financing routes.