Commercial Development Financing: How Property Schemes Actually Get Paid For
Ask a developer what nearly sank their last project and the answer is almost never the bricks. It's the gap. That stretch between money going out and money coming back in, where nothing is finished and nothing is earning. Commercial development financing exists to cover exactly that stretch. Why a Commercial Development Loan Isn't Just a Mortgage High street lending looks at what a building is worth right now. Fair enough for a house that already stands. A half-cleared plot with planning permission? That valuation says almost nothing useful. So a commercial development loan works off Gross Development Value instead — the number the finished scheme should reach once the last sign-off lands. Future worth, not present state. That single shift is what lets funding arrive before there's anything to photograph. Sites Come in All Shapes Some are straightforward. Single homes, small residential builds, a block of flats. Others less so. Office construction, retail ...