Can I Get 100% Development Finance?

Yes, it is possible to get 100% development finance in some cases, but it’s usually structured differently to a standard loan. Rather than funding the entire project with no input, lenders typically require additional security or experience to reduce their risk.

In most cases, 100% development finance means borrowing the full cost of a project by using additional security, such as another property, rather than providing a cash deposit.

How does 100% development finance work?

Development finance is usually split into two parts:

• Land purchase

• Build costs

Some lenders may fund:

• 100% of build costs

• A percentage of the land value

To reach “100% funding”, borrowers often:

• Use equity in another property

• Offer additional security

• Work with joint venture partners

Do you need a deposit?

Typically, yes — but not always in cash.

Instead of a traditional deposit, lenders may accept:

• Equity in another property

• Existing land ownership

• Additional assets as security

Who can get 100% development finance?

Lenders are more likely to consider this type of funding if you:

• Have previous development experience

• Are working with an experienced team

• Have a strong project appraisal

• Can demonstrate an exit strategy

What is an exit strategy?

An exit strategy explains how the loan will be repaid.

This could be:

• Selling the completed development

• Refinancing onto a long-term mortgage

• Retaining and renting the property

What are the risks?

100% development finance can increase risk, as you may be:

• Securing the loan against multiple assets

• Exposed to market changes

• Responsible for cost overruns

Careful planning is essential.

Is 100% development finance common?

It’s less common than standard development finance, but available in the right circumstances.

Working with a broker can help you access lenders who specialise in this area.

Want to explore development finance options?

We can help you understand what’s possible and structure a deal that works for your project.

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