Development Finance in Wandsworth
Expert development finance for property developers across the London Borough of Wandsworth. Access our panel of 100+ specialist lenders for competitive rates from 0.65% per month, up to 70% of total costs, with indicative terms within 24 hours.
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Up to 70%
Loan-to-Cost
Of total project costs including land, build, and fees
Up to 65%
Loan-to-GDV
Of the Gross Development Value on completion
0.65% pm
Rates From
Monthly interest rate on senior development finance
6-36 Months
Terms
Flexible terms to match your build programme
What is Development Finance?
Development finance is a specialist form of property lending designed to fund the construction, conversion, or substantial refurbishment of residential and commercial buildings. Unlike a standard mortgage, development finance is structured around the build programme, with funds drawn down in stages as construction progresses.
For property developers operating in Wandsworth, development finance provides the capital needed to acquire sites, fund construction costs, cover professional fees, and manage the project through to completion and sale. The London Borough of Wandsworth is one of the most active development markets in south London, with strong demand for new homes across areas including Battersea, Putney, Tooting, Balham, and Nine Elms.
Wandsworth's property market benefits from excellent transport links (Northern Line, District Line, Overground, and mainline services), highly-rated schools, extensive green spaces including Wandsworth Common and Battersea Park, and proximity to central London. These factors underpin strong Gross Development Values (GDVs) and give lenders confidence in financing schemes within the borough.
- Funds land acquisition, build costs, and professional fees
- Staged drawdowns linked to certified build progress
- Interest rolled up — no monthly payments during build
- Flexible terms from 6 to 36 months
- Competitive rates for experienced Wandsworth developers
Types of Development Finance
Development finance encompasses several product types, each suited to different leverage requirements and risk profiles. Understanding which structure best suits your Wandsworth project is critical to optimising your capital stack.
Senior Development Debt
Senior debt is the primary layer of development finance, secured by a first charge on the property. It represents the most cost-effective form of development funding and is available from a wide range of lenders including banks, specialist development lenders, and debt funds.
For Wandsworth development projects, senior debt typically provides up to 65-70% of total costs and 55-65% of GDV. The borough's strong end values and proven demand mean lenders are generally comfortable with schemes here, particularly in established areas like Battersea (SW11), Putney (SW15), and Balham (SW12).
Max LTC
65-70%
Max GDV
55-65%
Rates From
0.65% pm
Arrangement Fee
1-2%
- First charge security on the development site
- Lowest cost of capital in the development stack
- Wide range of lenders including High Street banks
- Staged drawdowns against QS certifications
- Interest rolled up during the build period
- Flexible terms from 6 to 36 months
- No exit fees with many lenders
- Day-one land funding available
From Application to Exit: The Development Finance Process
We guide Wandsworth developers through every stage of the development finance process, from initial enquiry to final loan repayment. Here is how it works.
Initial Enquiry and Project Appraisal
Submit your project details through our online form or call us directly. We review your scheme, assess feasibility, and provide initial feedback on fundability within hours. Include your site address in Wandsworth, planning status, build costs, and projected GDV.
Lender Sourcing and Term Negotiation
We approach our panel of 100+ specialist development lenders to secure the most competitive terms. We present your scheme professionally, negotiate rates and leverage, and shortlist the best offers for your review — typically within 48-72 hours.
Valuation, Due Diligence, and Legal
Once you accept indicative terms, the lender instructs a RICS valuation and QS appraisal of your Wandsworth scheme. Simultaneously, solicitors prepare the facility agreement and security documentation. This phase typically takes 2-4 weeks.
Completion and Initial Drawdown
The facility completes and the initial tranche is released, usually covering site acquisition and mobilisation costs. Your project is now funded and ready to commence on site.
Staged Drawdowns Against Build Progress
As construction progresses, the monitoring QS certifies completed works each month. Drawdowns are released within 3-5 working days of certification, funding ongoing build costs throughout the project.
Project Completion and Exit
Upon practical completion, you implement your exit strategy — whether that is selling units on the open market, refinancing to a term loan, or a combination. The development facility is repaid and any remaining profit is yours.
What Projects We Fund in Wandsworth
We arrange development finance for all types of property projects across the London Borough of Wandsworth, from single-unit conversions to large-scale new build schemes.
New Build Residential
Ground-up construction of houses, apartments, and mixed-tenure schemes. From single plots to large-scale developments across Wandsworth. Lenders value detailed planning consent and an experienced build team. Sites in areas like Nine Elms and Battersea are particularly well-received given strong end values.
Example Wandsworth Projects:
- Apartment blocks in Nine Elms (SW8)
- Town houses in Putney (SW15)
- Infill developments in Earlsfield (SW18)
- Sustainable homes in Wandsworth Town
Conversion Projects
Converting existing buildings into residential units is one of the most common project types in Wandsworth. Victorian and Edwardian houses converted into flats represent a significant proportion of the borough's development activity, particularly in Battersea, Clapham Junction, and Tooting. Permitted Development conversions from commercial to residential are also popular.
Example Wandsworth Projects:
- House-to-flats conversions in Battersea (SW11)
- Office-to-residential PD in Clapham Junction
- Pub conversions in Tooting (SW17)
- Church and chapel conversions in Balham (SW12)
Refurbishment
Light and heavy refurbishment projects to upgrade existing properties, improve space, and add value. This includes anything from cosmetic upgrades and reconfiguration through to full structural renovation. Wandsworth's period housing stock in areas like Putney and Wandsworth Common presents excellent refurbishment opportunities.
Example Wandsworth Projects:
- Period property renovation in Putney (SW15)
- HMO refurbishment in Tooting (SW17)
- Loft conversions and extensions in Balham
- Energy efficiency retrofits across the borough
Mixed-Use Development
Schemes combining residential with commercial, retail, or community uses on the ground floor. Mixed-use developments are actively encouraged in Wandsworth's planning policy, particularly along high streets and town centres such as Putney High Street, Tooting Broadway, and Wandsworth Town centre.
Example Wandsworth Projects:
- Retail with flats above in Tooting Broadway
- Office/residential in Wandsworth Town
- Restaurant/residential in Putney
- Community/residential in Battersea
Commercial Development
Purpose-built commercial schemes including offices, light industrial, trade counters, and logistics. While residential commands the highest values in Wandsworth, commercial development can offer strong returns, particularly in the borough's designated employment zones and along the A3 corridor near the Wandle Valley.
Example Wandsworth Projects:
- Flexible workspace in Nine Elms (SW8)
- Light industrial units along the Wandle
- Trade counter/last-mile logistics
- Medical and healthcare facilities
Am I Eligible for Development Finance?
Development finance is available to a wide range of borrowers, from experienced developers with extensive track records to first-time developers embarking on their initial project. Lenders assess applications based on several key criteria, and we work with you to present your scheme in the strongest possible light.
Our panel of 100+ lenders means we can usually find a solution for most viable Wandsworth development projects, even where circumstances are not straightforward.
What Lenders Look For
- • Development experience (though first-timers can qualify)
- • A viable project with planning consent or clear pathway to it
- • Realistic cost plan reviewed by a Quantity Surveyor
- • Credible GDV supported by comparable evidence in Wandsworth
- • Sufficient equity contribution (typically 10-35% of costs)
- • Clear and achievable exit strategy
- • Professional team including architect, contractor, and QS
- • Clean credit history (some adverse considered)
Borrower Types We Support
- • Experienced property developers and housebuilders
- • First-time developers with professional backgrounds
- • SPV (Special Purpose Vehicle) companies
- • Limited companies and partnerships
- • Joint venture structures
- • Overseas developers building in Wandsworth
- • Housing associations and registered providers
Understanding the Development Capital Stack
The capital stack refers to the layers of financing used to fund a development project. Each layer carries a different risk profile, cost, and priority in the event of default. Here is a typical capital stack for a Wandsworth development.
Example: £3M Total Cost, £4.5M GDV
Developer Equity
Highest risk, highest return — first loss position
£300K
10% of costs
Mezzanine Finance
Second charge — 1.0-1.5% pm
£600K
20% of costs
Senior Debt
First charge — 0.65-0.85% pm
£2.1M
70% of costs
Repaid last (highest risk)
Repaid first (lowest risk)
Risk increases upward through the stack
How the Capital Stack Works
In the event of a project being sold or refinanced, the capital stack determines the order in which parties are repaid. Senior debt is repaid first, as it holds a first charge on the property. This is why it carries the lowest interest rate — the risk is lowest.
Mezzanine finance is repaid second, after the senior lender has been made whole. Because the mezzanine lender only recovers their capital after the senior debt is cleared, they face more risk and charge a higher interest rate to compensate.
Developer equity sits at the top of the stack and is the last to be repaid. The developer bears the most risk but also captures the residual profit — the development margin — after all debt has been serviced. In a successful project, this is where the highest returns are generated.
For the example shown — a typical Wandsworth scheme with £3M total costs and a £4.5M GDV — the developer invests just £300K of their own capital. After repaying £2.1M in senior debt and £600K in mezzanine (plus accrued interest and fees), the remaining sale proceeds represent the developer's profit.
Development Finance vs Bridging vs Mezzanine
Understanding the differences between these three common property finance products will help you choose the right solution for your Wandsworth project.
| Feature | Development Finance | Bridging Finance | Mezzanine Finance |
|---|---|---|---|
| Purpose | Fund construction and development projects | Short-term property purchase or refinance | Additional leverage on top of senior debt |
| Max Leverage | 70% LTC / 65% GDV | 75% LTV | 90% LTC (combined) |
| Rates From | 0.65% per month | 0.55% per month | 1.0% per month |
| Typical Term | 6-36 months | 1-18 months | 6-24 months |
| Drawdown | Staged against QS certification | Full amount on day one | Typically drawn in full at completion |
| Security | First charge on property | First charge on property | Second charge behind senior lender |
| Speed | 2-4 weeks | 5-10 working days | 2-4 weeks (alongside senior) |
| Best For | New builds, conversions, major refurbishments | Auction purchases, chain breaks, light refurb | Maximising leverage on profitable projects |
Development Finance FAQs
Answers to common questions about development finance in Wandsworth. Can't find what you're looking for?
Ask Us DirectlyRelated Services and Resources
Bridging Finance
Short-term funding completing in 5-10 days
Mezzanine Finance
Additional leverage up to 90% combined LTC
Development Equity
JV equity for up to 100% of project costs
Development Finance Calculator
Model your project costs and returns
Battersea
Development finance in Battersea, SW11
Tooting
Development finance in Tooting, SW17
Ready to Fund Your Wandsworth Development?
Get indicative terms for your development project within 24 hours. No obligation, no upfront fees. Our expert team will source the most competitive development finance available from our panel of 100+ specialist lenders.
- Rates from 0.65% per month
- Up to 70% of total project costs
- Indicative terms within 24 hours
- 100+ specialist development lenders
- Expert support throughout your project