Development Finance Checklist and what to expect from a Good Dev Finance broker...

Obtaining Development Finance is frankly extremely hard work. Gone are the days when you could sit down over a bottle of Claret with the Bank Manager and emerge back into sunlight with a £1 milliion facility and a mild headache....

There are a hundred hurdles to jump and frustrating legal cul-de-sacs to negotiate and that is only on the assumption that you have found the right lender, in a pack of literally hundreds of options, to get your deal done.

Below is what you should expect from your development finance Adviser and also a checklist of what to expect from a lender

What to expect from a Good Debt Advisory Professional

• Collaborate with you to build a comprehensive lender pack including all relevant personal and corporate borrower information.

• Conduct a detailed planning investigation.

• Help you to disclose and address in terms suitable for any adverse credit history.

• Perform a comprehensive review and site visit to understand the planned development fully.

• Manage the lender application process on your behalf.

• Negotiate the best possible rates and terms.

• Present at least three viable lending options, explaining differences in lender terms clearly.

• Compare all lender terms on a like-for-like basis, prioritising your needs, which could include cheapest overall rates and fees, quickest completion time, or highest leverage.

• Advise on valuation matters and manage expectations concerning Gross Development Value (GDV).

• Liaise with both borrower and lender legal teams to ensure a smooth legal process.

• Negotiate on your behalf with the underwriters and if necessary the lender's credit team on any challenges that arise through the legal process

• Assist with preparation of documentation for the monitoring surveyor at the appropriate stage.

• Attend MS site visit

• Be available to work through and discuss facility documents and obligations along with solicitors

• Stay in contact throughout build and be available to liaise with Lender and MS if needed

• Review and discuss exit of the development loan at least 6 months prior to loan term date

• Discuss and negotiate refinance for any portion of he loan should that be necessary

Development Funding Checklist

1. Initial Enquiry & Assessment

• Gather basic project details: location, type of development, size, and budget.

• Client financial background and creditworthiness check.

• Understand the developer’s experience and track record.

• Preliminary discussion on funding needs, loan size, and terms.

• Confirm project feasibility (high-level overview).

2. Pre-Application Preparation

• Prepare initial project summary and business plan.

• Obtain site details: planning permission status, title deeds, and legal information.

• Prepare estimated costs: land, construction, professional fees, contingency.

• Assemble preliminary development appraisal (budget vs projected value).

3. Formal Loan Application

• Complete lender’s loan application form.

• Submit supporting documents:

  • Detailed business plan and development appraisal.

  • Copies of planning permission and all relevant consents.

  • Proof of land ownership or purchase agreement.

  • Developer’s financial statements, credit reports, and references.

• Provide CV or background of the development team.

4. Lender’s Due Diligence

• Lender reviews submitted documents.

• Independent valuation of land and projected end value.

• Technical review of plans and construction schedule.

• Legal due diligence on title, permissions, and any charges.

• Credit and background checks on borrower and key partners.

5. Loan Offer & Negotiation

• Receive Conditional Loan Offer / Heads of Terms.

• Review and negotiate terms: interest rate, fees, loan-to-value (LTV), repayment terms, covenants.

• Agree on drawdown schedule and security arrangements.

• Confirm insurance requirements (buildings, liability, etc.).

6. Legal Documentation

• Instruction of solicitors for legal work.

• Draft and review loan agreement, security documents (mortgages, charges).

• Finalize any subordination or inter-creditor agreements if relevant.

• Sign-off on all legal documents by borrower and lender.

7. Pre-Drawdown Conditions

• Satisfy lender’s pre-drawdown conditions:

  • Confirm planning conditions met.

  • Provide evidence of insurance.

  • Provide any additional requested documents or guarantees.

• Set up loan accounts and payment instructions.

8. Loan Drawdown & Monitoring

• First draw released (often to complete land purchase).

• Monitor project progress via regular site inspections and reporting.

• Submit drawdown requests per agreed schedule with supporting evidence (invoices, certificates).

• Ongoing financial monitoring and compliance checks.

9. Completion & Loan Repayment

• Confirm project completion (practical completion certificate or equivalent).

• Final valuation and assessment.

• Arrange for repayment or refinancing if applicable.

• Close loan account and release securities upon full repayment.