Development Finance in Greenwich — Fund Your Next Project
Access competitive senior debt funding for ground-up developments, conversions, and major refurbishments across the London Borough of Greenwich. Rates from 0.65% per month, decisions in 24 hours.
Up to
70%
Loan-to-Cost
Up to
65%
Gross Dev Value
From
0.65%
Monthly Rate
Up to
36 months
Loan Term
What Is Development Finance?
Development finance is a specialist form of short-term lending designed specifically to fund property development projects. Unlike a standard mortgage, development finance is structured around the unique requirements of construction and renovation projects, with funds released in stages as work progresses on site.
For property developers working in Greenwich, development finance provides the capital needed to acquire sites, fund construction costs, cover professional fees, and carry the project through to completion and sale or refinance. The loan is secured against the development site and the value of the completed project.
Greenwich has emerged as one of South East London's most dynamic development markets. With the borough's ambitious regeneration programme, excellent transport connections via the DLR, Overground, and National Rail services, and relatively competitive land values compared to neighbouring boroughs, the area presents compelling opportunities for developers at every scale.
Whether you are planning a single-unit conversion in Kidbrooke, a multi-unit new build in Charlton, or a large-scale mixed-use scheme in Greenwich Town Centre, development finance provides the funding structure to make your project viable. Our access to over 100 specialist lenders means we can source competitive terms tailored to your specific project and experience level.
Why Choose Us for Development Finance
Types of Development Finance Available
Development projects can be funded through multiple layers of the capital stack. Understanding these options helps you structure the most efficient funding package for your Greenwich project.
Senior Debt
The primary layer of development finance, secured as a first charge against the property. Senior debt typically funds up to 60-70% of total project costs and carries the lowest interest rates in the capital stack. This is the foundation of most development funding structures and is the most widely available form of development finance.
Leverage
Up to 70% LTC
Rate
From 0.65% pm
Stretched Senior
An enhanced form of senior debt where a single lender provides a higher loan-to-cost ratio than standard senior debt, typically up to 80-85% LTC. This simplifies the funding structure by avoiding the need for a separate mezzanine lender and intercreditor agreement, though rates are usually higher than standard senior debt.
Leverage
Up to 85% LTC
Rate
From 0.75% pm
Mezzanine Finance
A second-charge loan that sits behind the senior debt, filling the gap between the senior lender's maximum LTC and the developer's available equity. Mezzanine finance can take the combined LTC up to 85-90%, significantly reducing the cash equity required. It carries higher rates than senior debt but is cheaper than equity.
Leverage
Up to 90% combined
Rate
From 1.0% pm
Development Equity
Equity funding from a joint venture partner or equity provider that can take the total funding up to 100% of project costs. Rather than charging interest, equity partners take a share of the development profit, typically 20-50%. This is ideal for developers who have strong projects but limited cash resources.
Leverage
Up to 100%
Rate
Profit share
Understanding the Capital Stack
The capital stack represents the layers of funding that make up the total financing for a development project. Each layer has different risk characteristics, costs, and priority in the event of a sale or default. Understanding the capital stack is crucial for structuring the most efficient and cost-effective funding package.
For a typical Greenwich development project, the capital stack might be structured with senior debt providing the majority of funding at the lowest cost, mezzanine finance bridging the gap to reduce equity requirements, and the developer's own equity providing the remaining capital and acting as the first-loss piece.
The key principle is that layers lower in the stack (senior debt) have priority in repayment and therefore carry lower risk and lower cost. Layers higher in the stack (equity) bear the most risk but also capture the most upside. By optimising the capital stack, developers can maximise their return on equity while keeping overall finance costs manageable.
Developer Equity
10-30%Highest risk, highest return. Your cash in the deal.
Mezzanine Finance
10-20%Second charge. Higher rate, fills the gap to senior.
Senior Debt
55-70%First charge. Lowest risk, lowest rate. Core funding.
Repayment priority (senior debt repaid first)
How Development Finance Works in Greenwich
From your initial enquiry through to project completion, here is a step-by-step guide to the development finance process for Greenwich property projects.
Initial Enquiry & Project Assessment
Contact us with your project details. We need to understand the site, the proposed development, your budget, timeline, and experience. You can call us, complete our online form, or send us an email with a brief project overview. We respond to all enquiries within 2 hours during business hours.
- Site address and description
- Proposed development (number of units, type)
- Planning status (pre-app, submitted, granted)
- Estimated build costs and GDV
- Your development experience
Lender Search & Terms Comparison
We search our panel of 100+ development finance lenders to identify the best options for your specific project. Within 24 hours, we present you with indicative terms from multiple lenders, clearly comparing rates, fees, leverage, and conditions so you can make an informed decision.
- We approach multiple lenders simultaneously
- Indicative terms presented within 24 hours
- Clear comparison of all costs and conditions
- Recommendation based on your priorities
- No commitment required at this stage
Full Application & Due Diligence
Once you select your preferred lender, we prepare and submit a comprehensive application package. The lender instructs their valuer and solicitor to carry out due diligence on the project. We manage this entire process, liaising with all parties to keep things moving.
- Full documentation package prepared
- Independent valuation of site and GDV
- Lender's solicitor conducts legal due diligence
- QS reviews build costs and programme
- Credit committee approval obtained
Offer & Completion
Upon satisfactory due diligence, the lender issues a formal facility offer detailing all terms, conditions, and covenants. Once you accept and all legal conditions are satisfied, the facility completes and funds become available for drawdown. The initial drawdown typically covers the site acquisition.
- Formal facility letter issued
- All terms and conditions clearly documented
- Legal completion and charge registration
- Initial drawdown released (site acquisition)
- Typical timeline: 3-6 weeks from application
Construction Phase & Drawdowns
During the build phase, funds are released in stages against QS certification of completed works. Your appointed Quantity Surveyor visits the site regularly, inspects progress, and certifies the value of work completed. We maintain regular contact with you and the lender throughout the project.
- Monthly or milestone-based drawdowns
- QS certifies completed works before each release
- Funds typically released within 3-5 working days
- We monitor progress and liaise with the lender
- Ongoing support throughout the build phase
Exit & Repayment
Upon project completion, the development finance facility is repaid through your chosen exit strategy. This is typically achieved through the sale of completed units or refinancing onto a term mortgage. We can also assist with arranging exit finance or selling agent introductions for your Greenwich project.
- Sale of completed units (most common exit)
- Refinance onto term mortgage (for retained units)
- Partial exits through phased unit sales
- We assist with exit strategy planning from day one
- No early repayment charges on most products
Projects We Fund in Greenwich
From single-unit conversions to large-scale residential developments, we arrange development finance for every type of property project across the London Borough of Greenwich.
New Build Residential
Ground-up construction of new homes, apartments, and housing developments. Greenwich's regeneration pipeline creates strong demand for quality new-build residential schemes, from boutique developments in Plumstead to larger apartment blocks in Greenwich Town Centre.
1-50+ unit schemes, houses and apartments
Commercial to Residential Conversion
Converting former office buildings, retail units, and commercial premises into residential accommodation. Greenwich's high streets and commercial areas offer abundant conversion opportunities, many qualifying for Permitted Development rights that streamline the planning process.
PD rights, full planning, office and retail conversion
Heavy Refurbishment
Major structural renovation projects including extensions, loft conversions, reconfiguration of internal layouts, and full modernisation of tired properties. Greenwich's extensive Victorian and Edwardian housing stock in areas like Kidbrooke, Blackheath, and Charlton presents excellent refurbishment opportunities.
Structural changes, extensions, full renovation
Mixed-Use Development
Schemes combining residential units with commercial, retail, or community space. Mixed-use developments are actively encouraged by Greenwich Council's planning policies, particularly along major transport corridors and in town centres like Greenwich, Eltham, and Charlton.
Residential above commercial, live-work units
HMO Conversion
Converting properties into Houses in Multiple Occupation, providing affordable shared accommodation. Greenwich's proximity to central London and several university campuses creates strong demand for quality HMO properties, particularly in areas well-served by public transport.
Sui generis HMO, licensed HMO, co-living
Light Refurbishment
Cosmetic renovation and upgrading of existing properties, including new kitchens, bathrooms, flooring, decoration, and landscaping. These projects can often be funded through bridging finance with a lighter touch and faster turnaround than full development finance.
Cosmetic renovation, updating, modernisation
Development Finance Key Parameters
A comprehensive overview of typical development finance terms available for Greenwich property projects. Actual terms will depend on your specific project and circumstances.
| Parameter | Standard Senior | Stretched Senior | Senior + Mezzanine |
|---|---|---|---|
| Loan-to-Cost (LTC) | Up to 65-70% | Up to 80-85% | Up to 85-90% |
| Loan-to-GDV | Up to 60-65% | Up to 70-75% | Up to 70-75% |
| Interest Rate | 0.65-1.0% pm | 0.75-1.25% pm | Blended 0.8-1.2% pm |
| Arrangement Fee | 1-2% | 1.5-2% | 1-2% each tranche |
| Term | 6-24 months | 6-24 months | 6-36 months |
| Minimum Loan | £150,000 | £500,000 | £250,000 |
| Developer Experience | First-time accepted | 1+ projects | Varies by lender |
| Interest Structure | Rolled up | Rolled up | Rolled up |
| Exit Fee | 0-1% | 0-1% | 0-1.5% |
| Drawdown | Staged via QS | Staged via QS | Staged via QS |
* Terms are indicative and subject to individual assessment. Rates and terms correct as of January 2025.
Eligibility Requirements
While each lender has their own specific criteria, the following general requirements apply to most development finance applications for Greenwich projects. Meeting these criteria does not guarantee approval, and falling short on one area does not necessarily mean a decline, as our wide lender panel means we can often find solutions for non-standard situations.
Planning Permission
Full (detailed) planning permission or Permitted Development rights. Some lenders will consider projects with outline planning or subject-to-planning applications.
Equity Contribution
Minimum 25-35% equity contribution for standard senior debt. This reduces to 10-15% when mezzanine finance is layered in. Equity can include existing equity in the site.
Project Viability
The project must demonstrate commercial viability with a reasonable profit margin, typically a minimum of 20% profit on cost for lenders to feel comfortable with the risk.
Professional Team
A credible professional team including architect, quantity surveyor, and main contractor (or project manager for self-build approaches). Lenders assess the team's capability alongside the developer.
Exit Strategy
A clear and realistic exit strategy, whether through open market sale of completed units, refinancing onto a term mortgage, or a combination of both.
Quick Eligibility Check
Answer these questions to get a quick sense of your eligibility for development finance in Greenwich:
If you can answer yes to most of these questions, you are likely eligible for development finance. Contact us for a no-obligation assessment.
Check My EligibilityGreenwich Development Market Expertise
Our deep understanding of the Greenwich property market helps us secure the right funding for your project and present your application in the strongest possible light to lenders.
Greenwich Town Centre
SE10The Greenwich Peninsula regeneration is transforming the town centre with major mixed-use schemes. Strong lender appetite for both residential and mixed-use projects in this core regeneration area.
View area guideCharlton
SE7One of London's most exciting development hotspots with significant price growth. Lenders view Charlton favourably due to proximity to Canary Wharf and major transport links. Excellent for new build and conversion projects.
View area guideWoolwich
SE18Strong rental demand from University of Greenwich students and young professionals. Good opportunities for HMO conversions and smaller residential schemes with solid exit strategies.
View area guideEltham
SE9The Eltham Town Centre regeneration masterplan is driving interest from developers and lenders alike. Early movers in Eltham are securing competitive land values with strong upside potential.
View area guideKidbrooke
SE3A mature and established residential market with high-quality Victorian housing stock. Ideal for conversion and refurbishment projects. Lenders appreciate the strong comparable evidence available.
View area guidePlumstead
SE18Growing demand from families pricing out of Dulwich and East Dulwich. Excellent for refurbishment and extension projects, with lenders comfortable with the area's established price levels.
View area guideDevelopment Finance FAQs
Answers to the most common questions about development finance for Greenwich property projects. If your question is not covered here, please do not hesitate to contact us.
Related Finance Services
Development finance is often used alongside other funding products. Explore our full range of property finance solutions for Greenwich developers.
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Development Finance Across Greenwich
We arrange development finance for projects throughout the London Borough of Greenwich.