Chelsea Development Finance Calculator

Start by entering the purchase price of the land or existing property, followed by your estimated build costs. The Gross Development Value (GDV) is what you expect the completed project to be worth once all units are sold or the refurbishment is finished.

Adjust the Loan to Cost and Loan to GDV sliders to reflect the leverage you are targeting. The calculator will automatically apply the more conservative of the two constraints, which is how lenders determine your maximum facility in practice.

The interest rate and loan term allow you to model different cost scenarios. Note that this calculator applies a simplified interest model on the full facility. In reality, development finance interest is charged on drawn amounts, meaning your actual interest costs may be lower.

Development finance costs comprise several elements beyond the headline interest rate. The arrangement fee (typically 1-2% of the facility) is charged upfront for setting up the loan. Some lenders also charge an exit fee of 0-1% when the loan is repaid, though many competitive lenders have moved to zero exit fee products.

Monthly interest is the most significant ongoing cost. Rates for Chelsea development projects typically range from 0.65% to 1.25% per month, depending on the loan size, LTV, your experience, and the complexity of the project. Interest is usually retained (added to the loan) rather than serviced monthly.

Additional costs not shown in this calculator include valuation fees, monitoring surveyor fees (the QS who certifies drawdowns), and legal costs for both your solicitor and the lender's solicitor.

Chelsea is one of London's prime development locations, which generally means favourable lending terms due to strong underlying property values and robust buyer demand. Development finance rates for Chelsea projects typically start from 0.65% per month for experienced developers with strong track records.

The rate you receive depends on multiple factors: loan size, loan-to-value ratio, your development experience, the project type, and the strength of your exit strategy. New build residential schemes in prime Chelsea locations often attract the most competitive rates, while complex refurbishments of listed buildings may command a premium.

As a specialist Chelsea development finance broker, we compare terms across more than 100 lenders, including high street banks, challenger banks, private debt funds, and specialist development lenders. This ensures you always receive the most competitive rate available for your specific project.