Development Finance Calculator
Size a UK development facility from your GDV, build cost and land cost. Returns loan, equity required, LTGDV, LTC, and flags when a deal would need mezzanine to close.
How lenders actually size a UK development facility
Every senior development lender runs three sizing calculations and lends the smallest of the three:
- LTGDV cap — loan ≤ target% × GDV. Typically 60–70%.
- LTC cap — loan ≤ target% × (land + build + fees). Typically 85–90%.
- Build cost cap — loan ≤ 100% of build cost. Always binding when LTC or LTGDV would otherwise let you fund land too.
Which one binds depends on how land-heavy your scheme is. High-land-value sites (London, prime commuter belt) usually bind on LTGDV. Lower-cost land with high-margin product usually binds on LTC.
Reading the band indicator
- Clean senior — your equity covers the gap with room. Most deals sit here and close uneventfully.
- Tight — needs mezz — your equity falls short of the equity required. You need mezzanine finance (or a JV partner) to bridge the gap. Expect to pay 12–18% on the mezz tranche.
- High risk — the numbers imply a profit margin the lender won't underwrite. Re-check GDV, build cost and land assumptions before going to a broker.
Related
- LTGDV Calculator — zoom in on the LTGDV ratio specifically.
- Bridging Loan Cost Calculator — for bridging alongside development (pre-planning, exit period).
FAQ
How is development finance calculated?
UK senior development lenders typically size a facility as the lower of (a) target LTGDV × GDV, (b) target LTC × total project cost (usually ~90%), and (c) 100% of build cost. Our calculator runs all three and returns the binding constraint.
How much deposit do I need for development finance?
On a typical 65% LTGDV senior facility, you'll inject around 30–35% of total project cost (land + build + fees) as equity. Adding mezzanine can reduce that to 10–15%, at a higher blended cost.
Can you get 100% development finance?
100% senior finance on a UK development is rare. It usually requires the land to have an exceptional gain baked in (so the lender is really advancing against GDV without taking real land risk) and a very strong sponsor track record. Combining senior + mezz + JV equity is the normal path to 95%+.
What does LTC mean in development finance?
Loan to Cost (LTC) is the facility size as a percentage of total project cost (land + build + professional fees + contingency). Senior lenders typically cap LTC at 85–90%, which often binds before LTGDV on land-heavy schemes.