Development Finance for a First-Time Developer in Scotland

Every developer starts somewhere. At Positive Commercial Finance, we help first-time developers access funding by matching strong projects with lenders that understand experience isn’t measured solely by completed developments.

In this case study, we arranged Development Finance for a First-Time Developer building nine new homes near Glasgow, using a streamlined lending process that avoided the need for a separate third-party valuation.

The Opportunity

Our client was an experienced project manager working for a well-established construction company in Scotland.

After purchasing a development site outright, they successfully secured planning permission for nine timber-frame houses.

Although this would be their first independent development, they had extensive construction knowledge and planned to manage the project themselves rather than appoint a main contractor under a fixed-price contract.

To strengthen the proposal further, they partnered with an experienced colleague who would also help oversee the scheme.

The Challenge

Many development finance lenders prefer borrowers with an established track record of delivering their own projects.

In addition, self-managed developments can sometimes reduce the number of available funding options.

The priority was therefore to find a lender that would assess the developer’s professional experience, the quality of the scheme and the capability of the project team, rather than relying purely on previous development history.

Our Solution

Positive Commercial Finance introduced the client to a specialist development finance lender with experience of supporting well-qualified first-time developers.

After reviewing the project, the lender was satisfied with both the proposed development and the team’s expertise.

Importantly, the lender did not require a separate third-party RICS valuation report, helping to reduce both costs and timescales.

Instead, they relied on the available information regarding the site’s current value and projected Gross Development Value (GDV), while their appointed Quantity Surveyor confirmed that the construction costs were appropriate.

To keep the transaction moving, solicitors and the Quantity Surveyor were instructed simultaneously, allowing the finance to progress efficiently.

Deal Structure

• Loan to Cost (LTC): 82%
• Loan to Gross Development Value (LTGDV): 65%
• Facility Amount: £795,000
• Interest Rate: 1.1% per month (rolled up)
• Arrangement Fee: 2%
• Exit Fee: 0.5%

The Result

The client secured the funding needed to begin their first residential development with confidence.

The lender’s pragmatic approach, combined with a streamlined underwriting process, helped avoid unnecessary delays and reduced upfront costs.

This case study demonstrates that Development Finance for First-Time Developers is achievable when a strong project, experienced team and specialist lender are brought together.