Development Finance Using Owned Land for a New-Build Home in Cornwall

Positive Commercial Finance specialises in arranging Development Finance for developers with ambitious projects and complex funding requirements. This case study shows how we helped a developer use inherited land as their contribution to secure over 100% loan to cost, allowing them to build a large new home in Cornwall without investing additional cash.

The Challenge

Our client had recently completed their first development project, which involved building a pair of semi-detached houses.

Soon afterwards, they inherited a development site in Cornwall and identified an opportunity to build a large new home.

Although the land provided significant value, the client wanted to preserve their own cash for future opportunities.

Their objectives were clear:

• Release capital from the value of the inherited land.
• Fund 100% of the construction costs.
• Cover the full professional fees associated with the development.
• Avoid making any personal cash contribution.

The project also represented a significant step up in scale compared with the client’s previous development experience. As a result, many traditional lenders would have been reluctant to provide the level of funding required.

Our Solution

Positive Commercial Finance sourced a specialist Development Finance lender that recognised the value of the inherited land as the client’s contribution to the project.

Rather than requiring a cash deposit, the lender accepted the land as the developer’s stake in the scheme.

This allowed the client to release funds against the land from day one while also securing finance for the entire build cost and professional fee budget.

By structuring the facility in this way, we delivered a funding package of over 100% loan to cost, giving the client the flexibility to progress the development without tying up their own capital.

Deal Structure

• Loan to Cost (LTC): Over 100%
• Interest Rate: 1% per month
• Arrangement Fee: 2%
• Exit Fee: 1%
• Term: 12 months

The Outcome

The client secured a flexible Development Finance facility that funded the entire construction project while also releasing capital from the value of the inherited land.

This allowed them to take on a larger and more ambitious development without investing additional cash, while building on the experience gained from their first project.

This case study demonstrates how Development Finance can help developers unlock the value of owned land, reduce upfront capital requirements and confidently progress larger residential developments.