Development Finance2026-05-03T18:38:22+01:00

Development Finance

Up to

90% LTC

  • Rates from 0.85%
  • Up to 24 months term
  • No collateral warranties
  • Option to part service

Development finance from £300,000 to £2 million

Flexible development finance for experienced developers and contractors delivering smaller residential schemes. Our ground-up facility is structured to support cash flow and provide flexibility around build programme, planning position, warranties and contractual arrangements.

Deals we fund

Colenko offers development financing for small-scale residential projects, providing flexible terms, fast decision-making and funding certainty across a diverse portfolio of schemes.

Residential Units

Residential Block

Infill Development

Garden Development

Key facts

Loan amount £300,000 to £2 million
Loan term Up to 24 months
Loan-to-gross-domestic-value (LTGDV) Up to 70%
Loan-to-cost (LTC) Up to 90%
Monthly rate From 0.85% per month
Interest Option to part service
Security First charge
Ownership Individual or SPV
Region England and Wales

Our process

Smaller schemes often require greater flexibility than larger institutional developments. We structure facilities that allow developers to move forward efficiently while maintaining disciplined oversight.

Contact our sales team

Mark Marlow
Mark Marlow
Head of Sales
mark@colenko.com
020 4576 9470
Lee Moran
Lee Moran
BDM, London and South
lee@colenko.com
020 7948 9706

Why choose Colenko?

Choosing a lender is about more than rate. With Colenko, you gain a proactive partner, clear communication at every stage, and the necessary experience to keep your transaction moving from first conversation through to completion.

Clarity

We lend with a clear understanding of your circumstances, providing full transparency on what we can offer. By assessing your situation thoroughly, we deliver funding that works from the outset.

Communication

We keep you informed throughout the process with clear, straightforward updates. You can move forward with confidence, supported by consistent and reliable communication.

Commitment

When we issue terms, we stand behind them. We navigate complexity, overcome challenges, and remain committed every step of the way to ensure your loan progresses smoothly to completion.

Highly Commended Bridging Lender of the Year 2025 NACFB

What our clients say

Here’s what clients say about working with Colenko. From first conversation to completion, we focus on clear communication, practical solutions, and keeping deals moving.

“I had a really positive experience with Colenko. The team stepped in and helped complete the deal smoothly. They were proactive throughout and communication was clear from start to finish. The process was well managed and efficient. I’d happily recommend them.”

Marianne, Kensington

“Our broker recommended Colenko and, given our tight timeframe and first auction purchase, we were initially a little hesitant. However, the team were excellent from the start. They were supportive, attentive and kept us updated while guiding us through the process.”

Olu, Lewisham

“We’ve worked with Colenko on several transactions and the experience has always been smooth. The team act quickly to ensure deals complete on time, even with tight auction deadlines. Their responsiveness and efficiency make the whole process straightforward.”

Michael, Oxford

Frequently asked questions

What is development finance?2026-03-03T16:46:43+00:00

Development finance is short-term funding used to purchase land and cover construction costs. It typically includes provision for build costs, professional fees and working capital to get the project started.

How do development finance loans work?2026-03-03T16:47:04+00:00

Funds are usually released in stages as the build progresses. An initial advance may be provided for site purchase, with subsequent drawdowns approved by a monitoring surveyor. Interest is often rolled up during the term and repaid when the project is sold or refinanced.

Can I use development finance to build a house I’m going to live in?2026-03-03T16:47:27+00:00

No. Development finance is generally provided for investment projects that will be sold for profit or refinanced onto a longer-term facility. Loans for owner-occupied homes are structured differently and may fall under regulated lending rules.

What kind of schemes can I fund with development finance?2026-03-03T16:47:46+00:00

Development finance is commonly used for single residential units, small housing schemes, infill sites and residential blocks. The suitability of a scheme will depend on planning status, build costs, projected values and the developer’s experience.

Is development finance expensive?2026-03-03T16:48:03+00:00

Pricing depends on leverage, risk and the complexity of the scheme. Smaller developers can often access competitive rates, particularly where the project is straightforward and margins are strong. The total cost should be assessed over the full term of the facility.

What costs are associated with development finance?2026-03-03T16:48:22+00:00

The main costs are the arrangement fee and interest charged on the facility. You should also budget for valuation fees, monitoring surveyor reports and legal costs. Ongoing drawdowns may involve additional surveyor inspections.

Speak to the development finance team

Need funding for a smaller residential development? Speak to our team about flexible facilities and prompt credit decisions.

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