Property Development Finance in Scotland: How does it work?

How do some property developers in Scotland get a better property development finance rate than others.

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FAQ: Property Development Finance in Scotland Frequently Asked Questions


How does Property Development Finance in Scotland Work?


Borrowing for a development project is based on a percentage of the property or land purchase price, or if a planning gain has increased the value the borrowing can be based on the value. Thereafter, refurbishment costs or ground up build costs are funded in arrears with monthly drawdowns based on a Quantity Surveyor's report.


What is the Minimum Loan Amount?


The minimum loan amount for property development funding in Scotland is £750,000. However, bridging finance from £50,000 can be used for smaller developments.


How are Property Developments in Scotland Financed?


Property development finance is designed to help with the purchase costs and build costs associated with a residential or commercial property development project and is normally for a short term period of between 6-30 months with the loan repayment coming from the sale proceeds or re-financing to a term loan.


Can I get 100% Property Development Funding?


It's certainly not easy, however In certain circumstances it is possible.


Some of the main circumstances could be;


1. When the property or land you are buying has increased in value due to planning permission being granted resulting in your purchase price being below market value.


2. When you have negotiated a below market value purchase price.


3. When you joint venture with a property or landowner, the unencumbered property or land can be used to secure the borrowing.


4. When you offer an additional property as security in order to borrow up to 100% of the purchase price.


How do I Apply for Property Development Finance in Scotland?


Most Property Development lenders generally require applicants to submit their applications through an experienced broker who can help guide them through the process.




It’s fair to say that property development is not for the faint-hearted. There are many moving parts that can make or break your development project.


However, mitigate these moving parts and property development can prove to be a very profitable and satisfying business.


It’s also fair to say there are two main hurdles that have to be overcome by every property developer before a brick is laid or a wall is demolished.


1. Sourcing the Development Project, finding good development projects are not as easy to find as some people might think and a good potential pipeline of projects is what every property developer strives for.


2. When considering to source Property Development Finance in Scotland it's crucial to get in touch with a resourceful and experienced development finance broker who can minimise your development equity contribution and offer innovative funding solutions whilst providing the service you need when you need it and always acting in your best interest.


Knowing that a project can be funded on time for the purchase of your site and that build cost drawdowns land in your bank account within 72 hours is imperative to the success of your project. The old saying “Time is Money” is never truer when it comes to property development.




Bridging finance is commonly used for property development projects with a borrowing requirement from £50,000 to around £2,000,000 and property development finance can be used for a borrowing requirement of £750,000 to £50,000,000.


Dependant on the size of the project, the short term loan can typically be for a period between 6 and 30 months.


Both bridging lenders and development lenders will assess the borrowing capacity for a development project based on the GDV (Gross Development Value) of a project and apply the LTGDV (Loan to Gross Development Value) calculation to establish the maximum loan amount.


Both types of lenders will advance a percentage of the land or property purchase price or value on Day 1 then provide a drawdown facility that can be drawn on a monthly basis for the build costs or refurbishment costs.




Dependant on the size of the project, not having previous first-hand experience of borrowing development finance should not prove to be an obstacle.


However, if this is your first property development project it will be vitally important that you surround yourself with an experienced professional team, ie. Architect, Structural Engineer, Quantity Surveyor and lawyer that have demonstratable experience in the type of project you are proposing and ideally you will have some background experience in the form of project managing a development of a similar size.


Another comfort provider for development lenders is the quality and experience of the building contractor that you would be proposing to use, again, they should have demonstratable experience in the type and size of the project you are proposing along with the type of building contract that you would have in place, this should be a fixed price building contract.




There are generally two ways development funding can be repaid, from the outest it is imperaive that a pre-defined exit strategy is established, it can be from the sale proceeds of the completed development or if your intention is to retain the project and rent it to a third party the development funding can be repaid by refinancing the project to a longer term commercial mortgage.


Alternatively, development exit finance can be utilised to allow you to repay your loan and take your profit out of the project for re-investment in your next project.




Get in touch with us for a no obligation discussion about your project and if possible provide a property development appraisal detailing:


• The land or property purchase price / valuation.


• Estimated Build costs.


• Estimated Professional fees.


• Estimated Legal Fees.


• Projected Sale Prices or Valuation.




As noted above, getting a development finance approval has a lot of moving parts, as an experienced finance brokerage with over 30 years experience and solely focused on property finance for property developers and investors we would be happy to guide you through the process and if required put you in touch with an experienced professional team that can help you leverage their experience.


Existing Property Development

Bridging finance is ideally suited for developing an existing property and is generally used for buying property in need of refurbishment.


Bridge funding has now evolved to facilitate refurbishment costs in the form of staged payment drawdowns in the same way that traditional property development funding does.


Bridging loans have many uses, they are typically used for financing buy to flip and buy to let projects, buying individual flats and houses, commercial to residential conversions projects, buying land or buying one property before selling another.

Ground Up Development

Ground up property development finance is ideally suited to projects like new build apartment blocks and development of land to provide semi-detached and detached housing.


However, the development size can be from a small 6 flat apartment block on a gap site to a multi-unit land development project.


It is generally more complex to arrange as it can involve land surveys and various other technical requirements like planning consent, building warrant and roads department approval.

Build to Rent Development

Build to rent projects have gained massive popularity over the last few years, partly due to the affordability factor with first time buyers struggling to get a mortgage along with property investment still remaining one of the strongest investment asset classes.


We can arrange build to rent development finance for the simplest “buy, refurbish, rent and refinance” strategy for an individual flat to a ground up development of flats.


Build to let finance can seamlessly convert to longer term mortgage finance upon project completion.


Residential Development
  • £750,000 to £50 Million.
  • LTGDV up to 70%.
  • Up to 100% of Build Costs.
  • Market leading fixed interest rates set on a deal by deal basis
  • Maximum Term up to 30 Months.
  • Indicative terms within 24 hours
Semi-Commercial Development
  • £750,000 to £30 Million.
  • LTGDV up to 60%.
  • Up to 100% of Build Costs.
  • Market leading fixed interest rates set on a deal by deal basis
  • Maximum Term up to 30 Months.
  • Indicative terms within 24 hours
Commercial Development
  • £750,000 to £25 Million.
  • LTGDV up to 55%.
  • Up to 100% of Build Costs.
  • Market leading fixed interest rates set on a deal by deal basis
  • Maximum Term up to 30 Months.
  • Indicative terms within 24 hours



Market leading property development loans in Scotland for Refurbishment and New Build development projects from a single unit project to multi unit projects and commercial to residential conversions.

From £750,000 to £50M for Refurbishment and New Build developments.

Decision in principal in 4 hours and Fast Completion.

Funding also available for projects under £750,000

Our Development
Finance Experience.


Development Exit Finance becomes relevant when your property development project is approaching completion or has already concluded, but you’re awaiting final sales.

It is suitable for one property, small developments and is commonly used for multi-unit projects.

This financial solution offers developers the essential flexibility to raise capital and seamlessly transition from one project to the next.

Decision in principle in 4 hours and fast completion.

Our Development Exit
Finance Experience.


Build to Let Development Finance also known as Build to Rent Development Finance, is readily available for new build, refurbishment and commercial to residential conversions properties.

Build to Rent projects seamlessly convert to commercial term finance upon project completion.

Decision in principal in 4 hours and Fast Completion.

Funding also available for projects under £750,000

Our Build to Rent
Finance Experience.

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We wanted to build an app that had a real convenience and benefit to others in our property and finance world.


The App is Forever Free to use with or without a funding requirement.


Easily assess the viability of your property project within 60 seconds, then if required, book a time slot to discuss your project with a funding expert.


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3 reasons to choose us as your SOURCE FOR PROPERTY FINANCE.

Highly Experienced

We have over 30 years experience and can offer innovative financing methods for developers and investors.


We offer Bridging, Refurb & New Build Development Finance and Buy to Let Mortgages.

Quality Support

We'll keep you informed every step of the way and if required, continue to support even after completion.


what our clients think about us - matters

Absolutely delighted with the service levels and attention to detail provided and was never left wondering what was happening with my residential development bridging application, I saved over £1000 in legal fees and it completed ahead of schedule. Happy Days.

Mr. C from Glasgow. Property Developer.



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Glasgow G3 7SL

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