Development Finance
in Chelsea

For Chelsea development projects, you can typically borrow up to 70% of total costs (LTC) and up to 65% of the gross development value (GDV). Most deals in Chelsea range from £1M to £20M, though we regularly arrange larger facilities for premium schemes. The exact amount depends on your experience, the project specifics, and the strength of your exit strategy.

Development finance rates for Chelsea projects currently start from 0.65% per month, though the rate you receive will depend on several factors including your development experience, the loan-to-value ratio, project type, and overall risk profile. Senior debt rates typically range from 0.65% to 1.25% per month. We compare terms across 100+ lenders to ensure you receive the most competitive rate available for your specific project.

We can provide indicative terms within 24 hours of receiving your project details. From formal application to completion, the typical timeline is 2 to 4 weeks for straightforward deals. More complex projects, such as those in conservation areas or requiring RBKC planning approval, may take slightly longer. If speed is critical, we have access to lenders who can complete in as little as 5 working days.

You will typically need to contribute 25% to 35% of the total project costs as equity. This can come from cash, existing property equity, or a combination of both. For experienced developers with a strong track record, some lenders may accept lower equity contributions, particularly when combined with mezzanine finance which can stretch your leverage up to 90% of total costs.

Yes, first-time developers can access development finance, though the terms may differ from those offered to experienced developers. Lenders will typically want to see a strong professional team in place, including an experienced project manager or contractor, a credible architect, and a realistic appraisal. You may face slightly higher rates and lower leverage, but we have lenders on our panel who actively support new developers entering the Chelsea market.

We arrange finance for a wide range of Chelsea development projects including new build residential schemes, conversion of commercial to residential, period property refurbishments, basement excavations and extensions, mixed-use developments, lateral conversions of Victorian and Georgian terraces, and luxury apartment fit-outs. Whether your project involves a single unit or a multi-unit scheme, we can source appropriate funding.

Development finance is drawn down in stages rather than as a single lump sum. The initial drawdown typically covers the land purchase or site acquisition. Subsequent drawdowns are released against a Quantity Surveyor (QS) certification that confirms completed works match the agreed build programme. This staged approach protects both the lender and borrower, ensuring funds are released in line with project progress. Your dedicated QS will visit the site at agreed intervals to verify works.

The main fees for development finance include an arrangement fee of 1% to 2% of the loan facility, an exit fee of 0% to 1% (though many lenders now offer zero exit fee products), valuation fees which vary by project size, legal fees for both your solicitor and the lender's solicitor, and monitoring surveyor fees for ongoing QS inspections. We provide a full breakdown of all costs upfront so there are no surprises during your project.