How We Helped a Developer Secure £2.4M in 5 Days

Property development is a business built on timing. The best sites do not wait around for indecisive funders. They go to the developer who can move first and move with certainty. This case study tells the story of one such deal: a £2.4M development finance facility arranged and completed in just five working days.

It is a deal that could have gone wrong at several points. A lender withdrawal. A tight exchange deadline. A valuation that needed to happen within 48 hours. But the developer had the right preparation, the right advisers and the right funding partner. That combination turned what might have been a missed opportunity into one of the most efficient completions we have facilitated.

The Developer’s Background

The borrower behind this deal was a mid-sized residential developer based in South East London. He had been active in the market for over fifteen years, building and selling properties across the capital and the surrounding Home Counties. His portfolio of completed schemes included conversions of Victorian terraces into flats, small ground-up builds of four to six units and a handful of larger projects involving up to twenty apartments.

At the time he approached us, he had two live projects on site and had recently sold out a completed scheme of eight flats in Lewisham. That track record mattered. Lenders look closely at a developer’s experience and delivery history when assessing risk. A borrower who can demonstrate consistent completions, realistic cost management and successful exits will always find more doors open to them than someone approaching their first scheme.

His company was structured as a limited company with a clean balance sheet. He had a personal net worth comfortably above the level most lenders require and had never defaulted on a facility. All of this became relevant when speed was essential, because it meant the underwriting could proceed with confidence rather than caution.

The Opportunity

The site in question was a former light-industrial yard in Bromley, on the edge of a residential street that had seen steady regeneration over the previous decade. The previous owner had operated a small building supplies business from the site for more than thirty years. When the owner retired, the site was marketed through a local commercial agent.

What made it attractive was the planning. Full planning permission had already been granted for the demolition of the existing structures and the construction of twelve residential apartments: a mix of one-bedroom and two-bedroom units across two low-rise blocks with allocated parking. The planning had been secured by the retiring owner as a way to maximise the sale price, and it had been approved without objection from the local authority.

The site measured just under half an acre. It was well connected by road and rail, with a station within a ten-minute walk offering direct services into central London. Comparable new-build schemes in the area were selling at between £375 and £425 per square foot, and recent sales data supported a gross development value (GDV) of approximately £4.8M for the completed scheme.

In short, it was exactly the kind of site an experienced developer looks for: brownfield, planning in place, strong local demand and a clear route to profit. You can read more about what lenders look for when planning permission is involved in our detailed guide.

Why Speed Was Critical

The vendor had set a fixed completion deadline. He wanted the deal done within ten working days of the exchange of contracts. This was non-negotiable. He had already accepted an offer from a different buyer several months earlier, and that deal had collapsed when the buyer failed to arrange finance in time. He was not prepared to go through the same process again and had made it clear through his agent that any buyer who could not demonstrate the ability to complete quickly would not be considered.

The developer exchanged contracts with a ten-day completion window and a non-refundable deposit of £150,000. That deposit was at risk from the moment contracts were exchanged. If the finance was not in place and completion did not happen on time, the developer would lose the deposit and potentially face a claim for damages.

This is a situation that arises more often than people realise in the development market. Speed of funding is not a luxury in these scenarios. It is a fundamental requirement.

The Challenge: A Lender That Fell Through

The developer had initially arranged finance with a well-known specialist lender. Terms had been agreed, a valuation had been instructed and the legal process was underway. Then, three days before completion was due, the lender’s credit committee raised concerns about the environmental history of the site. The property had been used for industrial purposes, and the committee wanted a Phase 2 environmental report before approving the facility.

A Phase 2 report would take a minimum of three to four weeks. That was time the developer did not have. The lender would not budge. The facility was effectively dead.

The developer’s broker contacted us on a Tuesday afternoon. He explained the situation, shared the existing valuation report, the planning documents and the development appraisal. He needed a lender who could look at the same information, form a view on the environmental question and get to completion before the Friday of the following week.

That gave us five working days.

Day-by-Day Timeline

Day 1: Tuesday - Enquiry, Assessment and Terms

The broker’s call came in at 2pm. By 3pm, a member of our team had reviewed the headline figures and confirmed that the deal was within our appetite. The site value of £3.43M, the loan request of £2.4M and the GDV of £4.8M all sat within comfortable parameters.

We requested the full pack: the existing valuation report, the planning decision notice, the approved drawings, the build cost schedule, the developer’s CV and company accounts. The broker had all of this ready and sent it over within the hour.

By 5.30pm, we had reviewed the documents and formed a preliminary credit view. The environmental concern raised by the previous lender was noted, but the existing Phase 1 report (which had been commissioned as part of the original valuation) showed no evidence of contamination and recommended no further investigation. Our credit team took the view that this, combined with the site’s use history (building supplies rather than heavy manufacturing or chemical storage), was sufficient to proceed.

Indicative terms were issued to the broker by 6pm. The developer confirmed acceptance at 7.15pm that evening.

The terms were clear: the facility would be structured as a development finance loan rather than a pure bridging loan. This meant it would include both the initial site acquisition tranche and staged drawdowns against the build programme, giving the developer the certainty he needed for the entire project lifecycle.

Day 2: Wednesday - Valuation and Legal Instruction

We instructed our panel valuer first thing in the morning. Ordinarily, a development valuation can take five to ten working days. We needed it done in one. This is where relationships matter. We work with a small number of valuers who understand our process and are willing to prioritise instructions when the deal justifies it.

The valuer confirmed that he could inspect the site that afternoon and deliver the report by close of business the following day. The cost for the expedited service was higher than a standard instruction, but the developer agreed to cover the additional fee without hesitation.

On the legal side, we instructed our solicitors and the developer instructed his. Both firms were put in direct contact immediately. The existing title report from the aborted deal was shared, saving considerable time. Our solicitors began their due diligence on the title, the planning permission and the borrower entity that same afternoon.

Understanding the role of the valuer and their ability to work to tight timescales is something many borrowers underestimate until they are in a time-critical situation.

Day 3: Thursday - Valuation Report and Credit Approval

The valuer delivered his report at 4pm. He confirmed the site value at £3.43M and assessed the GDV at £4.85M, broadly in line with the developer’s own appraisal and slightly above our initial estimate. His commentary on the environmental position aligned with the Phase 1 report and our own assessment. No further investigation was recommended.

The report was immediately submitted to our credit committee for formal approval. Credit approval was granted at 5.45pm. The approved facility was:

• Loan amount: £2.4M (Day 1 advance of £2.4M for site acquisition)
• Further drawdowns: Up to £1.1M against build costs, subject to monitoring
• Total facility: £3.5M
• LTV on site value: 70%
• Loan-to-GDV: 72%
• Term: 18 months
• Interest rate: 0.85% per month (rolled up)
• Arrangement fee: 2% of the total facility

Understanding how interest is calculated on these facilities is important for any borrower evaluating their total cost of finance.

Day 4: Friday - Legal Completion of Documentation

Both sets of solicitors worked through Thursday evening and into Friday to finalise the facility agreement, the legal charge and the associated security documents. The developer provided a personal guarantee, which is standard for facilities of this size.

The solicitors carried out final title searches, confirmed the planning position and verified the corporate structure of the borrower. All conditions precedent were satisfied by 3pm on Friday. The facility agreement was signed electronically and the legal charge was prepared for registration.

Our solicitors confirmed they were in a position to release funds on the following working day.

Day 5: Monday - Funds Transferred, Completion Achieved

At 9.30am on Monday, the net advance of £2.4M was wired to the developer’s solicitor’s client account. By 11am, the funds had been sent to the vendor’s solicitor. Completion was confirmed at 11.45am.

The developer had secured the site with four days to spare on his contractual deadline. His £150,000 deposit was safe. The project was live.

The Numbers in Detail

Here is a breakdown of the key financial metrics for the deal:

The loan-to-value ratio of 70% on the site acquisition was within the standard range for development finance transactions of this type. The overall loan-to-GDV of 72% reflected the inclusion of build cost drawdowns within the total facility.

How the Valuation Was Fast-Tracked

The speed of the valuation was one of the most critical elements of this deal. Without it, the credit approval could not have happened on Day 3 and the entire timeline would have collapsed.

Three factors made the fast-tracked valuation possible.

First, the site had already been valued by another RICS-registered surveyor as part of the original (aborted) deal. While we could not rely on that valuation directly, our valuer was able to review it as background material. This meant he did not need to start his research from scratch.

Second, the site was straightforward. It was a cleared brownfield plot with full planning permission and no complex legal or physical constraints. There was no listed building involvement, no flood risk and no unusual ground conditions. The approved scheme was a conventional residential development of a type the valuer had assessed many times before.

Third, and most importantly, the valuer had a strong working relationship with our team. He understood our requirements, knew the format of report we needed and was confident that the deal was viable before he even visited the site. That trust, built over years of working together, allowed the process to move at a pace that would be impossible with an unfamiliar valuer.

The Legal Process

The legal workstream ran in parallel with the valuation and credit process. This overlap was essential. If we had waited for credit approval before instructing solicitors, we would have lost at least a day.

Our solicitors were experienced in fast-turnaround development finance transactions. They had acted for us on dozens of similar deals and knew exactly what was required. The key steps in the legal process were:

• Title investigation and review of the existing title report
• Verification of the planning permission and confirmation that all pre-commencement conditions could be satisfied
• Review of the borrower’s corporate structure and preparation of the personal guarantee
• Drafting and negotiation of the facility agreement
• Completion of property searches (expedited)
• Preparation and execution of the legal charge

The use of electronic signatures on the facility agreement saved approximately half a day compared to wet-ink signing. The developer and his co-director were both available to sign promptly, which helped enormously.

The Exit Strategy

Every lender wants to know how they are getting repaid. The exit strategy for this deal was the sale of the completed units on the open market.

The developer’s plan was to build out the twelve apartments over a period of approximately fourteen months, then sell them individually through a local estate agent. Based on comparable evidence, the expected sale prices ranged from £325,000 for the one-bedroom units to £475,000 for the larger two-bedroom apartments.

Pre-sale interest in the area was strong. Several new-build schemes nearby had achieved sales rates of two to three units per month, suggesting a total sell-through period of four to six months after practical completion. That placed the expected repayment comfortably within the eighteen-month facility term.

As a secondary exit, the developer had the option to refinance onto a term loan if the sales took longer than anticipated. His personal financial position and the quality of the completed asset meant that a high street or specialist buy-to-let lender would be likely to offer terms on the completed units if needed.

This dual exit approach is something we always encourage developers to consider. Having both a primary sales exit and a refinancing fallback gives lenders additional comfort and can improve the terms available.

What Made Five Days Possible

Looking back at this deal, several factors combined to make the five-day timeline achievable. Removing any one of them would likely have added days or weeks to the process.

Broker Preparation

The introducing broker had done exceptional work before the first call. He had a complete document pack ready to share: valuation, planning documents, build costs, developer CV, company accounts and a clear summary of the deal. When we asked for information, it was available within minutes rather than days.

This is something we cannot stress enough. Delays in the provision of information are the single biggest cause of extended timescales in property finance. Getting a decision in principle early in the process can help both borrowers and brokers understand what will be needed.

Developer Experience

The borrower knew exactly what lenders require. He had been through the process many times before. His accounts were up to date, his company structure was clean and his personal financial disclosure was comprehensive. He responded to every request within hours. He did not push back on reasonable requirements and he trusted his advisers to manage the process.

Lender Decisiveness

Our credit team made a clear, reasoned decision on the environmental question within hours of receiving the enquiry. They did not defer. They did not request additional reports that would have added weeks to the timeline. They assessed the evidence available, applied their experience and formed a view. That decisiveness is only possible when the people making the decision have deep expertise in the asset class.

Legal Efficiency

Both sets of solicitors worked with urgency and pragmatism. They focused on the issues that mattered and did not allow peripheral points to delay the transaction. They communicated directly with each other rather than routing everything through their respective clients.

Valuer Relationship

The fast-tracked valuation was possible because of an established relationship built on trust and repeated collaboration. This is not something that can be manufactured at short notice.

Lessons for Developers

This deal offers several practical lessons for developers who may find themselves in a similar position.

Always Have a Backup Funding Plan

The developer in this case had exchanged contracts before his finance was confirmed. When his original lender withdrew, he was in a vulnerable position. If he had not found an alternative funder in time, he would have lost his deposit and potentially faced legal action from the vendor.

The lesson is clear: always have a contingency. Know who you would call if your primary funder fell through. Build relationships with brokers and lenders before you need them, not during a crisis.

Keep Your Documents Current

The reason we were able to move so quickly was partly because the developer had everything ready. His company accounts were filed and up to date. His personal financial information was organised. His project appraisal was detailed and realistic.

Developers who keep their documentation current will always be in a stronger position when speed matters.

Understand the True Cost of Delay

The cost of this facility was higher than a standard development finance arrangement might have been if there had been more time to shop the market. The expedited valuation fee was above normal rates. The legal costs reflected the urgency.

But the alternative was losing a £150,000 deposit and missing a site with strong fundamentals and clear planning. When developers weigh the cost of fast finance against the cost of losing a deal, the calculation almost always favours paying a premium for certainty and speed.

Choose Your Advisers Carefully

The broker in this deal was critical to its success. He knew which lenders could move at the required pace. He knew what information to prepare. He managed the process across all parties and kept everything on track. A less experienced broker might have wasted valuable time approaching lenders who could not deliver.

If you are a developer working on time-sensitive opportunities, having a good relationship with development finance specialists can mean the difference between securing a site and watching it go to a competitor.

Plan Your Exit Before You Start

The developer had a clear, well-evidenced exit strategy from the outset. He could articulate exactly how the lender would be repaid, supported by comparable sales data and a realistic build programme. This gave our credit team confidence and removed a potential source of delay.

Understanding the full landscape of what makes a strong bridging and development loan application will serve any borrower well.

The Outcome

Six months after completion, the developer was well into the build programme. The substructure was complete, the superstructure was progressing and the project was on budget. Three of the twelve units had been reserved off-plan at prices in line with the original appraisal.

The facility was performing exactly as planned. Drawdowns against the build cost schedule had been made on time following satisfactory monitoring surveyor reports. The developer was on track to repay the facility in full within the original eighteen-month term.

This is the outcome that every party in a development finance transaction works towards: a site acquired on time, a build progressing on schedule and sales evidence confirming the original projections.

It is also a reminder that development finance is about more than just the money. It is about the certainty that the money will be there when it is needed. It is about having a lender who understands the asset class, who can make decisions quickly and who will work alongside the developer through the life of the project. For developers looking to accelerate their projects, that partnership is invaluable.

Frequently Asked Questions

Can development finance really complete in five days?

It is unusual but achievable in the right circumstances. Five-day completions require a combination of an experienced borrower with all documentation ready, a lender with delegated credit authority and the ability to make fast decisions, a valuer who can prioritise the instruction and deliver within 24 to 48 hours, and solicitors on both sides who are prepared to work with urgency. Most development finance transactions take between two and six weeks. However, when all parties are aligned and the deal is straightforward, significantly faster timescales are possible.

What loan-to-value ratio is typical for development finance?

Most development finance lenders will advance between 60% and 75% of the site value on a day one basis. The total facility, including build cost drawdowns, is typically capped at 85% to 90% of total project costs or 65% to 75% of the gross development value. In this case, the day one LTV was 70% of site value and the total facility represented 72% of GDV. The exact ratio available will depend on the borrower’s experience, the strength of the project and the lender’s appetite.

What happens if a lender pulls out after contracts have been exchanged?

This is one of the most stressful situations a developer can face. If you have exchanged contracts with a fixed completion deadline and your lender withdraws, you risk losing your deposit and facing a claim for damages from the vendor. The key is to act immediately. Contact your broker, explain the situation and provide all existing documentation to potential replacement lenders. Having a relationship with lenders who specialise in fast completions is essential. In some cases, a short-term bridging loan can be arranged to cover the site acquisition while longer-term development finance is put in place.

How important is the exit strategy in a development finance application?

The exit strategy is one of the most important elements of any development finance application. Lenders need to understand exactly how and when they will be repaid. For a residential development scheme, the primary exit is usually the sale of completed units. Lenders will want to see comparable sales evidence demonstrating that the projected sale prices are realistic. They will also want to understand the expected sales rate and whether the total sales period falls within the loan term. Having a secondary exit, such as the ability to refinance onto a term loan, provides additional comfort.

What documents should a developer have ready for a fast development finance application?

At a minimum, you should have the following ready before approaching a lender: up-to-date company accounts, a personal asset and liability statement, a detailed development appraisal including build costs and projected sale prices, the planning decision notice and approved drawings, a project programme or build timeline, details of your professional team (architect, contractor, project manager), and your CV showing relevant development experience. Having these documents prepared and organised can save days or even weeks during the application process.

If you are a developer with a time-sensitive funding requirement or you simply want to understand your options before the next opportunity arises, StatusKWO is here to help. Get in touch with our team to discuss your project.