Loan Features & Process
Project feasibility assessed first
Lenders review feasibility studies, funding tables, QS reports, presales (if required), and both builder developer experience before approval.
Higher equity contributions
Development loans usually require a larger equity contribution compared to standard construction loans. Our panel lenders usually lend up to 65% of the gross realisation of your development, though some of our lenders may go as high as 75% for the right deal.
Staged funding and cost controls
Funds are released progressively, with drawdowns monitored against budgets and QS certifications.
Interest capitalisation often used
Interest is commonly capitalised to the loan account during construction, rather than paid monthly.
Presales
Some lenders require higher value in presales, whereas some are happy with zero presales. Knnowing where to apply for construction funding based on your project particulars is key.
Regular lender and QS inspections
Independent quantity surveyors assess progress before each drawdown is approved.
Defined construction and exit period
Loans include set construction timelines and clear exit strategies, such as sale, refinance, or hold.
GKM Mortgage Brokers can provide advice on debt structuring, interest capitalisation, presales, and staged releases aligned with cash flow.
Why use a Broker
Access to specialist development lenders
Brokers source funding from banks and non-bank lenders experienced in development finance. Lenders may price identical project funding differently and impose different conditions. The lending market and lender appetite for development loans change based on terms of development type, location, size, or presales.
Customised loan structures
Niches appear in the market, and our job at GKM is to find the lender who is the best fit for your project. The result should be a development funding facility with the lowest rate and costs with the least painful conditions in the market.
Funding to suit the project
Advice on debt structuring, interest capitalisation, presales, and staged releases aligned with cash flow.
Feasibility and lender readiness
Assistance reviewing feasibilities and presenting projects in a lender-ready format.
Pre-sales and funding strategy guidance
Support navigating presale requirements and funding triggers.
Coordinate multiple parties
Brokers liaise with quantity surveyors, valuers, solicitors, marketing teams, and lenders to get the project off the ground and keep the project moving.
Risk management and contingency planning
Guidance around buffers, cost overruns, and timing delays.