How long does development finance take to arrange?
The typical timeline for arranging development finance in the UK is 6 to 12 weeks from initial enquiry to first drawdown. However, this range is wide because the actual duration depends on the complexity of the scheme, the lender type, the quality of the information pack, and the responsiveness of all parties involved — borrower, solicitors, valuer, and lender.
Understanding each stage of the process helps developers plan their acquisition timelines and avoid delays that can jeopardise site purchases.
Stage-by-stage timeline breakdown
Development finance follows a reasonably predictable sequence. Here is a typical timeline for each stage:
- Deal packaging and submission (1–2 weeks) — Preparing the information pack: development appraisal, planning documents, build cost schedule, borrower CV, company accounts, and asset/liability statement. The quality of this pack directly affects every subsequent stage.
- Lender review and indicative terms (1–2 weeks) — The lender (or multiple lenders) reviews the deal and issues a term sheet or heads of terms. Some specialist lenders can do this within 48 hours; clearing banks typically take 1–2 weeks.
- Valuation and monitoring surveyor instruction (2–3 weeks) — Once terms are agreed, the lender instructs an RICS-registered valuer to provide a Red Book valuation and a monitoring surveyor to review the build cost and programme. Both require site visits.
- Legal due diligence (2–4 weeks) — The lender's solicitors carry out title checks, review planning permission, check for restrictive covenants, confirm building regulations compliance, and draft the facility agreement. This is often the longest stage.
- Credit committee approval (1 week) — Most lenders require formal credit committee sign-off once valuation and legal reports are received. Some committees meet weekly; others fortnightly or monthly.
- Completion and first drawdown (1 week) — Final document execution, satisfaction of conditions precedent, and release of the initial advance.
What causes delays?
Several common issues push timelines beyond 12 weeks:
- Incomplete information packs — Missing documents at submission stage cause back-and-forth that can add weeks.
- Title defects — Unregistered land, missing easements, restrictive covenants, or boundary disputes all require resolution before lenders will complete.
- Planning conditions — Pre-commencement conditions that haven't been discharged prevent drawdown on most facilities.
- Slow solicitors — Both borrower and lender solicitors can cause delays. Using solicitors experienced in development finance makes a material difference.
- Valuation discrepancies — If the valuer's GDV or build cost assessment differs significantly from the borrower's appraisal, renegotiation is required.
- Complex corporate structures — Multiple SPVs, overseas entities, or trust structures all add to legal due diligence time.
How to speed up the process
Developers who consistently arrange finance quickly share certain habits:
- Prepare a complete information pack before approaching lenders — appraisal, planning, costs, programme, borrower information all ready on day one.
- Instruct solicitors at the same time as the lender, not after terms are agreed.
- Use solicitors who specialise in development finance — they know what lenders require and can anticipate issues.
- Discharge pre-commencement planning conditions as early as possible.
- Resolve title issues proactively — get a title report early and address defects before they become lender concerns.
- Use platforms like Assesr that pre-package deals and match them to suitable lenders algorithmically, eliminating the manual lender search phase.
Does lender type affect timeline?
Yes, significantly. Clearing banks (Lloyds, NatWest, HSBC) typically take 8–12 weeks due to more bureaucratic processes and larger credit committees. Challenger banks (OakNorth, Shawbrook) can often complete in 6–8 weeks. Specialist funds and private credit lenders can sometimes complete in 3–5 weeks because they have more flexible decision-making structures and can run processes in parallel.
Speed comes at a cost, however. Faster lenders often charge higher interest rates and arrangement fees. Developers need to weigh the cost of speed against the risk of losing a site purchase due to a slow completion.
Planning your acquisition timeline
When agreeing an exchange-to-completion period for a site purchase, allow at least 8 weeks if using a challenger bank and 10–12 weeks if targeting a clearing bank. If using a specialist fund and the deal is straightforward, 6 weeks may be achievable. Always build in a buffer — delays are more common than early completions, and an expired completion deadline can mean losing the site and your deposit.