How to Finance Your Next Property Development Project in the UK

Financing a property development project can feel like a maze, especially when the numbers get bigger and the timelines get tighter. Whether you are building from the ground up or converting an existing building, having the right funding in place is one of the most important parts of a successful scheme.

At Otium Partners, we specialise in helping developers navigate this process with clarity and confidence. From sourcing the right lender to structuring your application and managing the journey, we are here to make sure your funding is fit for purpose from day one.

Understanding the Funding Landscape

Development finance is not one-size-fits-all. The market includes a wide range of lenders, each with different appetites for risk, project types and borrower profiles. That is where working with a specialist broker makes a real difference.

Most lenders will want to understand your project in depth, including:

· The purchase price and total development cost

· Your experience as a developer

· The gross development value (GDV)

· Your exit strategy (whether that is sale or refinance)

It is not just about ticking boxes. It is about presenting a coherent, commercially sound plan that a lender can get behind.

What Lenders Are Really Looking For

When assessing a development loan, lenders focus on a few key metrics:

· Loan to Value (LTV): How much you are borrowing against the purchase price

· Loan to Gross Development Value (LTGDV): How your loan compares to the projected final value

· Contingency: Whether you have allowed enough room for cost overruns

Lenders also want to know that you or your team have a strong grasp of the process. That includes planning, build stages, timelines and professional support like architects, QS, and contractors.

How Otium Helps Developers Secure the Right Finance

We work closely with clients to prepare and present their projects in the best possible light. That often includes:

· Reviewing your development appraisal and stress-testing assumptions

· Matching your scheme with the right lenders from our network

· Negotiating terms that work for your cash flow and risk profile

· Managing all the paperwork, timelines and communication on your behalf

We are not here just to introduce a loan. We act as your funding partner from start to finish.

Common Pitfalls and How to Avoid Them

Even strong projects can struggle if the funding is not structured properly. Some of the issues we help clients avoid include:

· Overestimating end values without evidence

· Underestimating build costs or timeframes

· Relying on a single lender without a backup plan

· Delays caused by missing documents or unclear financials

We bring foresight to the process. That means spotting potential red flags early, setting realistic expectations, and helping you stay in control.

Ready to Fund Your Next Project?

If you are planning a development and want to make sure your finance is structured for success, we would love to help. Whether you are a first-time developer or experienced in the field, Otium Partners can guide you through the funding process with clarity and confidence.

To speak to one of our brokers, call Jeff on 07872 601662 or email us at pa@otiumpartners.com