Full Transparency
What development finance
actually costs
Most brokers hide their fees until you're committed. We publish ours. Here's every cost you'll encounter, explained in plain English.
Our Fees
What we charge
Simple, transparent, and only payable on completion. No upfront fees. No retainers. No hourly rates.
Arrangement Fee
1% — 2%
of gross facility amount
Our standard fee, payable on completion (when the loan draws down). The exact percentage depends on deal complexity, loan size and structure. We agree this upfront — no surprises.
Upfront Fees
Zero
nothing until completion
We don't charge upfront fees, retainers or application fees. We do the work first — appraisal, lender sourcing, negotiation — and only get paid when you get funded.
Lender Costs
What the lender charges
These are the typical costs charged by development finance lenders. Ranges vary by lender, deal size and risk profile.
| Cost | Typical Range | When Payable |
|---|---|---|
| Interest Rate | 0.65% — 1.25% pm | Monthly / rolled up |
| Arrangement Fee | 1% — 2% | Completion |
| Exit Fee | 0% — 1.5% | Redemption |
| Valuation Fee | £3k — £15k+ | Upfront |
| Monitoring Surveyor | £500 — £1,500 per visit | Per drawdown |
| Legal Fees (Lender) | £5k — £25k+ | Completion |
| Legal Fees (Yours) | £3k — £15k+ | Completion |
Worked Example
What it looks like in practice
A typical 6-unit residential scheme to illustrate the full cost picture.
Example: 6-Unit Residential Scheme
Land £400k | Build £600k | GDV £1.5m | 18-month term
That's approximately 7.9% of GDV or 10.8% of total costs — a realistic picture, not a marketing number.
Watch Out For
Hidden costs other brokers don't mention
Minimum Interest Periods
Some lenders charge a minimum of 6–12 months interest even if you repay early. Always check the minimum term.
Non-Utilisation Fees
Some lenders charge a fee on undrawn funds. This can add up — especially on large facilities with slow drawdown schedules.
Extension Fees
If your project overruns, extending the loan can cost 1–2% plus increased interest. Factor contingency time into your build programme.
Default Interest
If you breach covenants or miss drawdown conditions, default interest can be 3–5% above standard rates. Know your facility agreement.
Broker Upfront Fees
Some brokers charge upfront fees of £1k–£5k just to start work. We don't. If a broker asks for money before they've done anything — question why.
Dual Representation
Some lenders use the same solicitor for both sides. This can save money — but make sure your interests are properly represented.
Want a real number for your project?
Use our calculator for a quick estimate, or talk to us for a detailed appraisal with real lender terms.