From Land to Build: Navigating Development Finance with Confidence

Turning a plot of land into a successful property development takes more than vision. It requires planning, expertise, and crucially, the right financial backing. Whether you are funding a single unit or a multi-home scheme, development finance is often the engine that gets your project off the ground.

At Otium Partners, we work with experienced developers and first-timers alike to help secure the funding that matches the scale, complexity, and ambition of their projects.

The Stages of Development Finance

Development finance is typically released in stages, not as a lump sum. Each stage of the build is assessed by a monitoring surveyor before the next tranche is drawn down. This keeps the lender informed and helps manage risk throughout the project.

The typical stages look like this:

· Land purchase or refinance

· Pre-construction and planning costs

· Groundworks and foundation

· Superstructure and roofing

· Internal works and finishing

Having a clear drawdown schedule and robust cost plan in place gives lenders the confidence to support your vision.

Why Planning Status Matters

If you are buying land without full planning consent, lenders will approach your project differently. Some may not lend at all until detailed permission is in place. Others may consider it if you can demonstrate a strong case for planning gain or provide additional security.

That is why early advice is key. At Otium, we help clients structure funding around their planning timeline, which can make the difference between moving forward or stalling.

Structuring the Deal for Success

Every development is different, and so is every loan. We help clients prepare strong applications by focusing on:

· Sensible costings and contingency

· Market-backed sales values

· Realistic timelines

· Experienced professional teams

We also make sure the deal fits your broader financial goals. That might mean securing mezzanine finance, rolling up interest, or arranging a facility that allows for early repayment without penalty.

Real Deal: Choosing Flexibility Over Cost

We worked with a developer converting an office block into 28 retirement apartments. The project required £3.5 million in development finance, and several lenders were interested. While one option had a slightly cheaper rate, we advised the client to choose a lender with more flexibility and experience in similar schemes.

That decision paid off. When construction delays arose, the lender remained supportive and adaptive — ensuring the project could continue without financial pressure.

Speak to the Experts

If you are planning a project and want to understand your finance options, Otium Partners can help. We will review your proposal, guide you through the process, and introduce lenders who can move at your pace and back your plans with confidence.

Call Jeff on 07872 601662 or email us at pa@otiumpartners.com for a confidential conversation.