Development Finance in Hampshire & the South Coast

Whether you are building a pair of houses on a Fareham infill plot, converting an office block in Southampton into flats, or planning a larger scheme along the South Coast, the right development finance can make or break the project. Vantage Asset & Commercial Finance arranges development funding for builders, developers and property investors across Hampshire and the South Coast, with Charles and Melanie handling your case personally from start to finish.

What is development finance?

Development finance is a short-term loan used to buy land or a building and pay for construction or conversion works. Unlike a standard mortgage, the build element is usually released in stages, as each phase of work is completed and checked by a monitoring surveyor. The loan is then repaid when the finished units are sold or refinanced onto longer-term finance.

Projects we help fund

• Ground-up new builds, from single houses to small and medium residential schemes.
• Conversions, including commercial to residential and houses to flats or HMOs.
• Heavy refurbishment where structural work is involved.
• Mixed-use schemes with commercial space below and residential above.
• Development exit finance, to repay a development loan while the finished units are sold or let.

How development finance is structured

Lenders typically fund a share of the land or purchase cost and a share of the build costs, with the developer contributing the rest. They will look closely at the gross development value (GDV), meaning what the finished scheme should be worth, and at the total costs, including contingency. Interest is often rolled up or retained rather than paid monthly, which helps cash flow during the build. Every lender sets its own limits, and we will explain how a particular lender would view your scheme before you apply.

What you will need to prepare

• Planning permission, or a clear route to it.
• A detailed build cost schedule and programme of works.
• Details of your contractor and professional team.
• Evidence of your experience, or the experience of the people you are working with.
• A realistic view of the end value, ideally supported by local agents.
• Your exit plan: sales, refinance, or a mix of both.

First-time developers can still find lenders, particularly when they work with an experienced contractor or project manager. Experienced developers usually have access to a wider range of options.

Why work with a local development finance broker?

Development lenders vary widely in appetite, from scheme size and property type to location and the borrower’s track record. We work with a wide range of lenders and can match your project with those most likely to suit it, then manage the process alongside you, your solicitor and the lender’s monitoring surveyor. Being based in Fareham, we know the Hampshire market well, from Portsmouth and Southampton to Winchester, Chichester and the Isle of Wight.

For more detail, see our development finance page. If your project is lighter refurbishment or you need to move fast on a purchase, a bridging loan may be a better fit. When the scheme is finished and you plan to keep the units, we can arrange the buy-to-let or commercial mortgage to refinance onto.

Development finance: frequently asked questions

Can I get development finance as a first-time developer?

Some lenders will consider first-time developers, especially for smaller schemes and where an experienced contractor or project team is involved. Each case is assessed on its merits and approval is not guaranteed.

Do I need planning permission before applying?

Most development lenders want planning in place before funds are released. If you are buying a site without planning, bridging finance may help with the purchase while you apply.

How are the funds released?

Usually in stages. A monitoring surveyor checks progress on site, and the lender releases the next tranche once each stage is signed off.

Which areas do you cover?

We are based in Fareham and focus on Hampshire and the South Coast, including Portsmouth and Southampton, but we can help with schemes elsewhere in England and Wales.