Usually high street banks can only provide seventy percent loan for the site acquisition and seventy percent for the build cost. To get the remaining amount needed for residential or commercial development finance, developers usually apply for 100% development finance from lenders in development finance UK.

One way to get this is to provide additional security, usually in a form of another property that lenders hold. Some astute investors would sometimes use this tactic just to get the needed fund. Of course, this has its disadvantages and developers may not be willing to take it, but this can be an option. If providing additional security won’t work nor has more disadvantages than benefits (depending on the type of security and the lender’s proposed arrangement), the best option would be through gross development lending.

Gross development lending is a tactic used by experienced developers where they are able to make foresighted sales value of the development project. The proof of their forecast is the output of the surveyor’s work on the property development which they hire for purposes of supporting their ideas. Once lenders are convinced of what developers are showing in their proposals, they provide the 100% development finance needed by the said developers at whatever suitable arrangement there is. The options to support the 100% development finance include mezzanine financing, equity finance and senior debt.