How Sheffield development finance works
From first enquiry to first drawdown in 3–6 weeks. A 7-step process, a clear set of lender criteria, and a sharply defined timeline for your Sheffield scheme.
Development finance in one paragraph
Development finance is a short-term specialist loan funding the construction, conversion or heavy refurbishment of a property scheme. In the Sheffield market, facilities are typically structured as first-charge senior debt at 70% loan-to-cost (LTC) and 65% loan-to-gross-development-value (LTGDV), with interest retained within the facility and drawdowns staged against construction progress. Terms run 12–24 months. Rates sit in the 7.5–12% per annum range depending on leverage, borrower experience and scheme type. Arrangement fees typically 1–2%.
The "how" of development finance splits into two halves: what lenders need to see (credit criteria, documents, valuations, professional team) and what the process looks like (appraisal, indicative terms, credit approval, legal completion, drawdown). We handle both sides — packaging the application to match lender expectations and coordinating the execution from initial enquiry to first drawdown.
The 7-step process
Initial enquiry and scheme appraisal
You send us the scheme outline — site, GDV, costs, programme, your track record. We review against current Sheffield lender appetite and identify the likely shortlist. Usually 1–2 working days.
Indicative terms
Within 48 hours we come back with indicative terms from three to five lenders: LTC, LTGDV, rate, arrangement fee, exit fee, PG position, and any conditions. You choose the preferred lender.
Application packaging
We build the credit pack: detailed scheme appraisal, cost plan (QS-signed if available), planning detail, GDV comparables, developer CV, equity proof, and professional-team contacts. This is the single biggest driver of approval speed.
Valuation
RICS “Red Book” valuation commissioned by the lender. The valuer assesses both the current land value and the residual GDV. Valuation is typically the critical-path item — 1–3 weeks.
Credit approval
Formal credit decision once valuation and full credit pack are in. Most well-presented schemes move to approval in 1–2 weeks from valuation sign-off.
Legal completion
Facility agreement, first legal charge, debenture, personal guarantee documentation, professional undertakings. Typically 2–3 weeks from credit approval, depending on your solicitor’s responsiveness.
Day-one drawdown
The first tranche releases at legal completion — typically covering site purchase. Subsequent drawdowns are tranched against monitoring surveyor certification of stage completions throughout the build.
Lender criteria — what they need to see
Experienced developer
Most lenders want to see at least one or two comparable completed schemes. First-time developers need a strong professional team and higher equity contribution.
Equity contribution
Typically 30% of project cost for senior, or 15–20% with stretch senior / mezzanine. Equity must be genuine and not otherwise encumbered.
Planning
Most Sheffield lenders require at least outline planning permission. Pre-planning facilities exist but are specialist and more expensive.
Realistic GDV
GDV must be supported by recent comparable evidence. Inflated GDV assumptions are the most common reason lenders push back on Sheffield schemes.
Cost plan
Ideally QS-signed. Lenders stress-test for cost overruns and will adjust facility size if the cost plan looks thin.
Clear exit
Sales strategy, pre-sales or forward agreements, or refinance route onto term investment finance. Exit strategy is as important as entry.
How long does it take?
From complete enquiry to first drawdown: 3–6 weeks for straightforward Sheffield schemes with experienced developers and clean planning. Critical-path items are valuation (1–3 weeks) and legal completion (2–3 weeks). We’ve completed facilities in as little as 10 working days on exceptional transactions — but that’s the exception, not the rule.
Ready to kick off the process?
Indicative terms within 48 hours of a complete enquiry.