Development finance

Our property development loans are designed for experienced developers, with a proven track record. We take a relationship based-approach, working together closely to understand your ambitions and helping you succeed over the long term.

Whether you’re looking to fund new builds, carry out a residential or alternative residential conversion, undertake a refurbishment or embark on a commercial development project, we can help.

Site - residential building with scaffolding

Build to rent?

If you’re planning on keeping your properties once the development is complete, our Specialised Residential Investment, Commercial Investment and portfolio buy-to-let teams could support you to do so. By refinancing onto a longer-term finance option with Hodge, you could save diligence and finance costs, as well as benefit from the security already being in place.

Working with Hodge

Tailored loans

Projects come in all shapes and sizes, and we’ll work with you to make sure our development loans are tailored to support your ambitions.
Experienced team

Our expert team have ‘through the cycle’ development experience, so we’re well placed to support you, whichever stage your project is at.
Efficient team

We’re a small team, close to the decision makers, which means you can expect a quick and effective service, with minimal hold-ups along the way.
Borrower options

We offer residential and alternative residential development finance of up to £10m on single transactions to individuals, partnerships and limited companies.

At a glance

Here’s an overview of our Hodge Development Loan for both residential and commercial developers. From our key criteria to the types of developments we can offer finance for, you’ll find all the information you need below.

Need to know

Available to experienced developers – individuals, sole traders, partnerships, LLPs, limited companies, PLCs
Build to rent option available
Loan size – minimum £1.5m, maximum £10m
Loan to Value (LTV) – maximum 65% GDV
Loan to Cost (LTC) – up to 80% cost
Term – up to 24 months
Interest margin – from 4.75%
Interest basis – Bank of England Base Rate
Fees – 2-3% (calculated on facility amount)
Commercial development finance only – pre-let and/or pre-sale required
Residential development finance only – New Homes Warranty (min 10 years)

Other information

First legal charge over freehold or leasehold (Leaseholds to have a minimum of 125 years remaining at completion).
Debenture incorporating charge over relevant contracts where applicable.
Interest cover and cost overrun guarantee.
Warranties from consultants/sub-contractors where design responsibility exists.
Repayment profile – 100% net sale proceeds or refinance onto investment/PBTL facility.