Why experience matters to lenders
Development risk lies in delivery: keeping the build on budget and programme and selling at the expected price. A track record shows a lender you have done it before. Without one, the lender looks for other comfort, mainly from the people around you and the simplicity of the project. Our first-time developer finance page lists lenders on our panel open to these cases.
Experience that counts
- Previous refurbishments or conversions, even if small
- A career in construction, surveying, architecture or property
- A portfolio of buy-to-let property you have managed
- Self-build of your own home
- A joint venture partner with a development track record
Set this out in a short property CV with photos, costs and outcomes.
Build a strong team
Lenders will look for an experienced main contractor on a fixed-price contract, a competent architect and structural engineer, a quantity surveyor and, ideally, a project manager. The contractor's track record and financial standing carry real weight. Self-managing trades on a first scheme is much harder to fund.
Choose the right first scheme
- Small: a handful of units rather than a large block
- Straightforward: houses or a simple conversion rather than complex basements or high-rise
- Full planning in place, with few pre-commencement conditions
- A healthy profit margin and evidenced values
- A location with a clear market for the finished units
A heavy refurbishment or permitted development conversion can be a good stepping stone.
Expect lower leverage and more scrutiny
First-time developers usually receive more conservative loan to cost and GDV limits, so more equity; see how much deposit for development finance. Pricing may be higher, monitoring closer and personal guarantees standard. Successful delivery opens up better terms on the next scheme.
Preparing your case
Prepare a full appraisal, planning documents, a contractor's quote and contract, your team's CVs, your own experience and an assets and liabilities statement. Then compare lenders that consider first-time developers on Instant Quotes.
Common reasons first schemes are declined
- A scheme that is too large or complex for a first project
- No main contractor, or a contractor without a relevant track record
- Planning not yet granted, or significant conditions outstanding
- A thin profit margin that leaves no room for overruns
- Not enough equity to meet the day-one land requirement
- GDV evidence based on asking prices rather than completed sales
Most of these can be addressed before applying: by choosing a smaller scheme, strengthening the team, bringing in a partner or reworking the appraisal. Lenders that consider first-time developers are looking for reasons to say yes, and a well-prepared case gives them those reasons.
Common questions
Can I get development finance with no experience?
Some lenders consider first-time developers, usually with a strong contractor and team, a simple scheme and lower leverage.
Does refurbishment experience count?
Yes. Previous refurbishments, conversions or construction-related careers are relevant experience that lenders take into account.
Should I bring in a development partner?
A partner with a track record can make a first scheme much easier to fund, in return for a share of the profit.
This guide is for general information only and should not be treated as legal, tax or financial advice. Lender requirements depend on the property and your circumstances.
