A development finance application process can vary significantly based on several factors, including the complexity of the project, the comprehensiveness and clarity of your application, and how quickly reports can be completed. Generally, the timeline for a development finance application can range from a few weeks to several months. We personally target finance approval within 4 weeks. This is down to our comprehensive upfront application process. Here is a breakdown of the things that can impact your development finance application:

1. Completeness of the application: If your application is well-prepared and includes all the necessary documents, it will massilvey help the process. Incomplete applications may result in delays as the lender may request additional information.
2. Project complexity: The size and scale of the development project can impact the time required for assessment. Larger or more intricate projects will require a more in-depth review, including whether or not you have the CV to evidence you can handle that size of project. Tip: Also consider if the project is geographically close to you. Ideally you don’t want a project more than an hour away from where you busines base it.
3. Due diligence and assessment: Specialist finance lenders conduct thorough due diligence to assess the feasibility, viability, and risks associated with the project. This process may involve site visits, financial analysis, market research, and legal reviews, which can extend the application timeline. They will consider the GDV (gross domestic value) of the project now but also in 12, 24 and 36 months down the line and apply a 90 to 180 day value to the site. This means that once constructed, if the development finance provider had to sell the dwellings quickly, then they can recoup enough profit to cover the debt, fees and interest accumulated on the development finance.
4. Lender’s internal processes: Each development finance lender has its own internal procedures and protocols for reviewing and approving applications. Some may have quicker turnaround times compared to others. When using a development finance broker like ourselves, we hold connections with the lenders to ensure we contact the right people and prepare your application correctly.
5. Negotiation and legal documentation: Once the development finance lender approves the bridging application, there may be potential negotiations regarding terms, interest rates, and other specifics. Drafting and finalising legal documentation can also take time.
6. External factors: External factors such as changes in regulations, market conditions, or unexpected issues that arise during the application process can also affect the timeline.
7. Solicitors: Our advice is simple, use a solicitor/conveyancer who has development finance experience and not a generalised residential solicitor/conveyancer. This isn’t to undermine them, however there is a big difference in the knowledge, what to check and also the process. Selecting the right solicitor/conveyancer can be the difference in weeks or even months in the legal process when you are purchasing land and/or handling development finance.

A well prepared and justified plan can make a huge difference in the timescales for your development finance application. Selecting the right specialist finance lender is also important. It isn’t always based on price or rate, especially if the processing speeds could cost you weeks in the process. Time is money!

For more information and advice, please feel welcome to contact our development finance broker team on 0117 251 0563.