Short-term development finance is a property funding solution designed to support acquisitions, refurbishments, or construction projects over a limited period — usually between 6 and 24 months. Unlike traditional long-term mortgages, this finance provides immediate capital for developers and investors, repaid upon project completion through property sales or refinancing.
In London and across the UK, short-term development finance is widely used by developers to secure sites, fund works, and deliver projects within strict timelines.
Site Acquisition – Purchasing land or buildings before full development loans are approved.
Refurbishment Projects – Carrying out upgrades or conversions to make a property mortgageable.
Planning Gain – Holding a site while securing planning permission to increase value.
Construction Finance – Funding ground-up developments or heavy renovations.
Exit Finance – Covering costs after project completion while awaiting sales.
Fraser Bond advises clients that short-term development loans are best used as a bridge between opportunity and long-term finance.
Loan Term – Typically 6 to 24 months.
Rates – Interest charged monthly, usually 0.6% to 1.5% per month.
Loan-to-Value (LTV) – Up to 70% on purchase, with staged drawdowns for construction.
Repayment – Via sale of completed units or refinance into longer-term debt.
Flexibility – Can be used for residential, commercial, or mixed-use projects.
Speed – Quick access to funding compared with traditional bank loans.
Versatility – Suitable for refurbishments, conversions, and new builds.
Opportunity Capture – Allows developers to secure sites in London before competitors.
Higher Costs – More expensive than long-term finance.
Exit Risk – Repayment depends on sales or refinancing.
Short-Term Only – Not a replacement for full development finance.
Fraser Bond works with developers, landlords, and investors to secure and structure short-term development finance:
Independent Advice – Assessing whether short-term funding is suitable for your project.
Trusted Lender Access – Introducing clients to established UK development lenders.
Application Packaging – Preparing proposals to secure approvals quickly.
Exit Strategy Planning – Ensuring repayment through sales or long-term finance.
Investor Support – Aligning development finance with portfolio strategy and compliance.
To explore short-term development finance tailored to your London or UK project, visit FraserBond.com.
