Development Finance experts you can trust.
We connect lenders and borrowers securely, ensuring transparency and simplifying the lending process.
Development Finance
Keeping Your Project Moving
Development finance transactions move quickly and often involve tight deadlines, complex structures, and multiple stakeholders. For developers, particularly those new to this type of funding, the process can feel demanding without the right legal support in place.
At PLS Solicitors, we provide clear, practical legal advice on development finance, supporting both borrowers and lenders through residential and commercial development projects. With extensive experience across a wide range of lenders and funding models, we help keep transactions moving and adapt quickly where circumstances change.
Our team regularly advises on development schemes with Gross Development Values (GDV) of up to £20 million.
Simple. Confident. Supported.
What is development finance?
Development finance is a form of short-term funding used to support the construction, conversion, or redevelopment of property or land. It may also be used to refinance an existing development where additional cash flow is required or where an alternative lending structure with a longer term is needed.
Types of Development Projects
While development finance can apply to all asset classes, we frequently act on:
Residential new build developments
Commercial and mixed-use schemes
Conversions and change-of-use projects
Renovation-led developments
Development finance often involves enhanced due diligence, complex security arrangements, and detailed lender conditions. Having the right legal team in place is essential to ensure all legal and commercial elements are clearly understood from the outset.
Gross Development Value (GDV)
Unlike traditional lending, development finance is typically assessed against the Gross Development Value of the completed scheme. Once the development is finished, the loan is usually repaid through the sale of the units or refinanced onto a longer-term lending product.
When Development Finance Used?
Development finance can support projects of all sizes, from single-unit developments to large, multi-unit schemes.
Common Uses of Development Finance
You may consider development finance if you are:
Starting a new build development
Converting residential, commercial, or mixed-use property, including change of use
Progressing an existing development that requires additional or alternative funding
Renovating a buy-to-let property prior to sale or letting
We work closely with a wide range of lenders, including high-street banks and private lenders. This means we understand differing lender requirements and can anticipate the due diligence needed, helping transactions progress smoothly through to completion.
How Does Development Finance Work?
Development finance is typically a short-term funding solution, commonly ranging from 6 to 24 months. Lenders will expect a clear and viable business plan, including defined exit strategies.
The Development Funding Structure
Most development finance facilities include two key elements:
Day 1 Funding
This supports the purchase or refinance of the development site. It may involve acquiring land for a new build or refinancing an existing property where the current lender is unwilling to fund the development through to completion.
Stage Payments (Tranches)
Funding for development works is usually released in stages as the project progresses. Each tranche is typically subject to approval by a monitoring surveyor, ensuring works have been completed in line with the agreed schedule. Contingency funds may also be included to manage unforeseen issues.
Legal Review and Lender Requirements
Once instructed, we will review the development finance facility documentation in detail and ensure good and marketable title can be provided to the lender before funds are released.
For larger or more complex schemes, lenders may require additional construction documentation, such as:
JCT building contracts
Professional appointments
Collateral warranties
We can assist with drafting, reviewing, or amending this documentation to ensure it aligns with lender requirements and protects your position.
Clear Advice and Risk Management
Before completion, we ensure you are fully advised on the finance facility, security documentation, and any construction contracts involved. Development finance carries a higher level of risk than standard lending, so identifying and mitigating risk early is critical.Development finance is typically a short-term funding solution, commonly ranging from 6 to 24 months. Lenders will expect a clear and viable business plan, including defined exit strategies.
Our role is to provide clarity, manage complexity, and ensure all parties fully understand the transaction before funds are released.
Supporting Your Development Finance Project
Whether you are undertaking your first development or managing a large-scale scheme, our experienced development finance team is here to support you from instruction through to completion.
Our Partner Lenders
Banks we work with
PLS has the infrastructure, technology and scale needed to provide fast, responsive and hands-on legal advice to lenders and developers. We act nationally for a wide range of specialist and high street lenders, and are on many major high street bank panels. Lenders trust us because we have highly secure checking procedures, integrated with the latest technology, from title checks to anti-money laundering.
Featured Case Study
Secured Lending
PLS secures the right result for a major high value development finance case in central London
This case was monumental in that it set the precedent for this Lender in how they approach development finance deals. The previous process in place was outdated in that it was better suited for smaller scale developments with less conditions precedents on the Developer to obtain the necessary construction documentation.
It is common to experience resistance, mostly from the Developer and the professional team, to provide the right construction documentation where required. If not completed in advance of the deal coming to us it can cause delays whilst the documents are drafted, which was demonstrated in this case. However, due to the high-risk nature of development finance it is important we maintain a balance of speed and mitigation of risk for all parties.
As this was a high value development with a professional team consisting of several different legal entities, we had to consider the contractual relationships between all parties involved in the build and adopt a risk averse approach to ensure the Lender had sufficient means to ‘step-in’ if the Developer became insolvent.
In a scenario where the Developer (or Borrower) falls away and is unable to complete the build, the Lender must have a sufficient contractual link to the professional team, so they are able to enforce any outstanding liabilities under construction documentation to ensure the build is finished where the Developer is not able to complete the build themselves.
Our advice differed somewhat form the Quantity Surveyor (QS) which caused a great deal of friction during the transaction. Our advice consisted of a detailed report on the reasons for obtaining a suitable JCT, Appointments and Collateral Warranties for the main contractor and sub-contractors followed by an urgent conference call with the Lender, the Developer and the QS to explain our advice in greater detail.
As a result of our risk averse approach and expertise, we received the “lions share” of this particular Lender’s development finance work due to increased confidence in our ability to ensure the Lender’s and Developer’s security is our primary concern, whilst putting precedents in place to ensure a smoother journey for future Developers.
“It is important for our clients to trust the advice we give them and in this transaction, it proved how critical our expertise was to the success of a case.”
– Kieran de Vares, Associate Director
“PLS is now our trusted advisor for all development finance deals – anything between £1-20million”
Why choose us:
We have a dedicated team of over 150 staff based in our Liverpool, Manchester and London offices and we work with a significant number of lenders in the market.
Let us help you to secure the property finance for your project. By working closely with a vast range of brokers and lenders, we can help you to fund a purchase of a new investment, release equity from your existing property or consolidate any debts.
Rebekah Bowyer
As first time buyers, this is all so new to us and Rubina Rob has been superb in making such a daunting experience easy and smooth. She’s super friendly and gets things done very quick! Nothing has been too much for her and she has been so patient regarding anything I’ve needed clarification on. Honestly, I could not recommend her more and will definitely come back to hopefully work with her in the future. We’ve exchanged contracts today and will complete on Thursday and none of this would have been possible without Rubina. We are buying a shared ownership property that is move in ready and in all the process has taken us around 2 months for anyone wondering. Thank you so very much!
Lucy M
I previously wrote a bad review but since a new solicitor took over my case, she has been absolutely fantastic. I can’t thank Rubina Rob enough for her hard work for getting me to complete within 9 weeks. She was extremely professional, proactive and constantly kept me up to date. She responded quickly to any queries I raised and always gave me a phonecall to explain further. I can’t thank Rubina enough, I would definitely use her in the future. Thank you so much! Rubina is a credit to PLS.
Zainab Hassan
I would say it was not straight forward but Will from PLS Contact made things clear and helped me. They were prompt in replying and making me understand the whole process.
Joy Brown
Fantastic service would definitely use again
Adam Tyrer
Good solicitors for us as first time buyers
Sean Fox
This feedback is specifically for Rubina Rob at PLS Solicitors. After a very poor start to my conveyancing experience, where much of my time and efforts were wasted by Matthew Howard and Sam Burton, Rubina took over my case. Once she did, things rapidly improved. Rubina kept me in the loop and was very responsive to emails and phone messages. She understood my frustrations with the previous handlers and dealt with my case in an efficient and professional manner. I will be leaving a separate review for PLS as a company when I have time to put everything in writing.
Consumer
We had Sean help us with our house buying experience and he was brilliant from start to finish. Emails were replied to quickly and searches were also completed in good time - we didn’t have to chase once. Would definitely use in the future. Thank you!
Kyle Van Dyk
We had a very pleasant and extremely quick process with Shah from PLS solicitors. He was always quick to respond to our queries and guided us through the whole process. I will highly recommend them!!!
Elaria Ibrahim
Thank you so much for making the process smoother and faster than we expected. We particularly appreciate Amy’s support in handling our case and all the effort they have put into helping us.
Kaj
Amazing experience from start to finish with one person, Clare Hessey, her professionalism stood out we never had to chase she kept us informed throughout a stressful and anxious process she took the time to explain with clarity when we did not understand. We have no hesitation in recommending Clare, she is simply amazing at what she does, an asset to PLS. Thank you so much Clare.
Resources
Frequently Asked Questions
Explore our FAQs for Development Finance!
What's the difference between the "Day 1 Loan" and the build cost funding?
The Day 1 Loan funds the purchase or refinance of the site itself. The remaining funding covers the development works, usually released in stages, or tranches, as the build progresses.
What is a monitoring surveyor, and why are they involved?
A monitoring surveyor checks that each stage of the development has been completed before the next tranche of funding is released, giving the lender confidence that funds are being used as intended.
What size of development scheme does PLS typically advise on?
Our team regularly advises on schemes with a Gross Development Value of up to £20 million.
How long does a development finance loan usually run for?
Development finance is typically a short-term facility, usually ranging from 6 to 24 months, with the loan repaid on sale of the completed development or refinanced onto a longer-term product.
