Skip to main content
Development Finance

Development Finance

Our expert team has wide-ranging experience in advising lenders on all legal aspects of a potential financing arrangement.

Our expert Banking and Real Estate Finance team has wide-ranging experience in advising lenders on all aspects of the funding of site acquisition and subsequent construction, conversion or refurbishment of residential, commercial and mixed use development sites, drawing on specialised construction, planning and insurance expertise where required.

At TWM Solicitors, we draft both industry standard and bespoke non-standard facilities and security in multiple-raise and single-raise deals for high street banks, alternative lenders, challenger banks, peer-to-peer operations and private funders.

Acutely aware of the time pressures involved in progressing developments, we are pro-active in liaising with the lender, any Independent Monitoring Surveyor and the borrower’s solicitor to identify satisfactory and practical solutions to any issues identified in the course of our legal due diligence as and when they arise so they can be resolved in good time prior to anticipated drawdown.

We are also able to offer collaborative advice from existing trusted professional advisors on construction documents including build contracts, professional appointments, collateral warranties and PI Insurance.

Key Contact

David Powell profile picture
David Powell

Partner in Real Estate Finance and Head of Corporate & Commercial

View profile

Here’s why you should choose our team

City-quality advice at regional prices – highly specialised solicitors offering expert advice and representation at competitive regional prices.

Solutions-oriented – we go beyond legal advice to provide practical personalised solutions and strategic commercial insights.

Accessible and responsive – easily accessible and responsive, ensuring you receive timely and proactive advice, when you need it.

Transparent pricing, no hidden fees – expect upfront pricing for your peace of mind and financial clarity throughout a matter.

Full service support – comprehensive legal services for every stage of your business, supported by seamless collaboration across our specialist teams.

Trusted by clients and professionals – our track record speaks for itself with a strong reputation for achieving outstanding results and high professional rankings.

Notable work

  • Advised senior lender (peer to peer lending institution) on all aspects of a £7,774,000 Recovery Loan Scheme development finance facility, including drafting and negotiation of all finance and security documents with institutional funding line and mezzanine debt providers and handling all due diligence and reporting aspects.
  • Advised a peer-to-peer lending institution in relation to a Coronavirus Business Interruption Loan Scheme development facility to fund a conversion of a former hotel to an assisted living facility for elderly care.
  • Advised a peer-to-peer lending institution in relation to a £3 million site acquisition and development facility for the building of holiday lets.
  • £1.7m development loan to fund the build of 9 residential bungalows in West Wales.

FAQs

A development loan is designed to assist with the costs associated in building out a commercial or residential development project. Projects can include new build houses or apartments or refurbishment and conversions of existing properties. Development finance can cover the costs of a whole development project or be split across several phases. In some instances, the funds can also be applied to acquisition of the site or property as well as its future development.

This is the ratio used to measure the amount of debt financing being used to fund the development of a property compared to the estimated value of the completed development.  Each lender will have their own parameters which establish the maximum amount that can be lent.

The key advantage of having a collateral warranty in place is that it creates a direct contractual relationship between the contractor or consultant and a lender, allowing a lender to claim for losses should the contractor or consultant default and typically offer a lender step-in rights to enable the lender to ensure a development is completed if the borrower who has employed the contractor or consultant defaults on their loan.

A development exit loan can be used to repay outstanding development finance and are usually recognised as a type of bridging loan. 

These are usually offered to or obtained by borrowers once the buildings at a development site are ‘wind and watertight’ and the development finance loan is coming to an end and sales of the units that have been built won’t be completed before the term of the development loan expires. 

A development exit loan can also assist in releasing equity from a project that is nearing completion to fund the next project a borrower has in the pipeline.

Contact the team

Here's how to get in touch if you have any questions at all or would like to speak to us about your enquiry. Please complete the form below and one of our experts will get in touch to discuss how we can help.

Fields marked with indicate required fields

Would you be happy for us to call you?
Would you like us to keep you up to date with our latest news and insights?

Your marketing preferences can be changed at any time here.

Do you agree to our privacy policy?

By ticking this box, you agree to our terms. We will only use the information you provide to handle your enquiry.
The information you submit will be handled in accordance with our privacy policy

What our clients say...

Related insights

  • 24 September 2026

The Building Safety Levy – what developers need to know before 1 October 2026

Read more
  • 10 September 2026

EV charging points at commercial properties: key considerations for landlords and tenants

Read more
  • 07 July 2026

The ban on upwards-only rent reviews: what landlords and tenants need to know

Read more
  • 30 June 2026

Proposed reforms to commercial leaseholds: The Law Commission consultations

Read more

Don't miss out

Subscribe to stay up to date with our latest news and insights.

We're here to help

Call us

0330 555 0440

Make an enquiry

Message us