Property development finance plays a pivotal role in the Scottish real estate landscape, enabling developers to transform concepts into tangible assets. Whether you’re a seasoned developer or a newcomer, understanding the intricacies of financing is essential. In this guide, we delve into the specifics of property development finance in Scotland.

1. Mechanics of Property Development Finance

Understanding the mechanics of property development finance is crucial. Here are the key components:

2. Loan Amount

The loan amount typically represents a percentage of the property or land purchase price. Additionally, lenders consider funding for refurbishment costs or ground-up construction. As a developer, you’ll receive the necessary capital to kickstart your project.

Property Development Finance: Typically, property development loans in Scotland can be used for a borrowing requirement of £750,000 to £50,000,000 with a loan term of 9 to 36 months.

Bridging Loans: Typically, bridging finance can be used for property development projects with a borrowing requirement from £50,000 to around £2,000,000 with a loan term of 3 to 24 months.

3. Loan Term

Property development finance in Scotland can span from 6 to 30 months. Repayment occurs either from the sale proceeds or through refinancing. The goal is to complete the project efficiently and repay the loan promptly.

4. Monthly Drawdowns

Throughout the development process, lenders release funds based on Quantity Surveyor reports. These reports ensure that the funds align with the project’s progress. As milestones are met, you can access the necessary capital to keep the project moving forward.

5. Choosing the Right Solution

Selecting the right financing solution depends on various factors:

  • Project Scale: Consider whether your project involves light development, extensive renovation, or ground-up construction.
  • Experience: Your track record as a developer influences the financing options available to you.

6. Popular Uses for Property Development Finance

  • New Residential Projects: Property development finance is ideal for ground-up developments, such as building new housing estates or apartment complexes. It covers land acquisition, construction costs, and infrastructure development.
  • Renovating Existing Properties: Developers can use property development finance to transform old or dilapidated buildings into modern, desirable spaces. This includes renovations of historic properties or repurposing industrial sites.
  • Property Conversion - Change of Use: Property development finance supports converting existing buildings for different purposes. For instance, turning a former office building into residential apartments or converting a warehouse into creative workspaces.
  • Private Rented Sector (PRS) Schemes: These involve developing residential properties specifically for renting. Build to Rent schemes cater to the growing demand for high-quality rental accommodation.
  • Commercial Developments: Property development finance can fund the construction or renovation of commercial spaces such as offices, retail centres, and warehouses. These projects contribute to economic growth and job creation.
  • Mixed-Use Developments: These combine residential, commercial, and sometimes leisure spaces within a single project. Examples include live-work developments, where residents can run businesses from their homes.


Property development finance bridges the gap between vision and reality. Seek advice from experts, explore your options, and embark on your Scottish property journey with confidence. Remember that each project is unique, and finding the right financing partner is essential.

Before you Begin the Application Process:

Consult with an Expert Property Development Finance Broker: At Evolve Finance we understand how property development finance works and can guide you through the intricacies of the process, helping you explore all available options.