Wellspring Capital is a development finance broker based in Manchester, arranging funding for property developers and investor-developers across the UK. We work with clients on projects across Greater Manchester, the North West, and nationally.
We structure development finance based on scheme viability, lender appetite, and exit strategy — ensuring funding aligns with real-world project delivery from the outset.
What development finance is used for
Development finance is commonly used for ground-up residential, commercial and mixed-use developments, heavy refurbishment and conversion projects, change-of-use schemes, industrial units, offices, multi-unit residential developments, and small to mid-scale commercial developments.
Unlike term lending, development finance is drawdown-based, released in stages against verified build progress, and assessed against Gross Development Value (GDV) rather than current asset value alone.
Residential Development Finance Manchester
Residential development finance is one of the most active areas of lending across Greater Manchester, with strong developer appetite for new build housing, apartment schemes, and conversion projects across the region.
We arrange residential development finance for schemes across Manchester city centre, Salford, Trafford, Stockport, Oldham, Bury, and the wider M and OL postcode areas. Projects typically include ground-up new build houses and apartments, permitted development conversions of offices or commercial buildings into residential units, HMO conversions and extensions, and multi-unit schemes for sale or refinance onto a buy-to-let portfolio.
Lenders assess residential schemes primarily on GDV, build cost credibility, planning status, and the developer’s track record. First-time developers can access development finance, and lenders will assess each scheme on its own merits, a credible build team, realistic appraisal figures, and a clear exit strategy carry significant weight in the absence of a track record.
Typical parameters for residential development finance include loan-to-cost up to 85%, loan-to-GDV up to 65%, and terms of 12 to 24 months, depending on scheme size and complexity. Interest is usually rolled up into the facility rather than serviced monthly, preserving cashflow during the build phase.
How lenders assess development finance
Lenders focus on overall scheme viability rather than the asset in isolation. Key considerations include Gross Development Value (GDV), Loan-to-Cost (LTC) and Loan-to-GDV (LTGDV), total build and professional costs, developer experience and track record, planning status and conditions, contractor arrangements, and exit strategy on completion.
Development finance is typically available up to 85% LTC and 65% LTGDV, though higher leverage is available depending on asset type, scheme quality, and developer experience. A well-structured proposal can materially affect both loan size and pricing.
Loan structure and drawdowns
Most development finance facilities are structured with an initial land or acquisition advance, subsequent drawdowns released against verified build progress, interest rolled up or serviced monthly, and monitoring surveyor oversight throughout.
Understanding how drawdowns interact with project cashflow is critical. Poor structuring can cause funding gaps even on otherwise strong schemes.
Exit strategy
Every development finance facility requires a clear and credible exit. Common exits include refinance onto a commercial mortgage, sale of completed units, portfolio refinancing, or sale to an investor or operator. Exit viability is one of the most important factors in lender approval.
How Wellspring Capital works
We take an advisory-led approach to development finance, understanding lender credit logic, structuring funding to match scheme realities, identifying issues before they become objections, and presenting cases clearly and conservatively. We also arrange bridging finance and commercial mortgages for developers and investors across the UK.
Speak With a Development Finance Broker
Based in Manchester and working with developers across the UK, we are happy to provide an initial view on funding structure, lender appetite, and scheme viability at an early stage.
Early conversations often prevent costly delays later.
Call: 0161 706 0122 or 07969 216 566 Email: an@wellspringcapital.co.uk
Discuss your development project
Wellspring Capital — Development Finance, based in Manchester, arranged across the UK
Frequently Asked Questions
How do UK development finance lenders assess a scheme? Lenders focus on overall scheme viability rather than the property in isolation. The key factors are Gross Development Value, total build and professional costs, planning status, developer experience, contractor arrangements, and a credible exit strategy. A strong proposal addresses each of these clearly and conservatively.
What is the maximum loan available for development finance? Most lenders will advance up to 85% of total costs and 65% of GDV on residential schemes. Higher leverage is available on stronger schemes with experienced developers, though it may come at a higher rate.
Can a first-time developer get development finance in Manchester? Yes. Lenders assess each scheme on its own merits, and a credible build team, realistic appraisal figures, and a clear exit strategy carry significant weight in the absence of a track record. Having a broker structure and present the proposal professionally makes a material difference to lender appetite.
What is the difference between development finance and a bridging loan? Bridging finance is typically used for shorter-term needs such as acquisition, refurbishment, or time-sensitive purchases. Development finance is specifically structured for ground-up builds or major conversions, with staged drawdowns released against build progress and a longer facility term.
Important note
Wellspring Capital is not authorised or regulated by the Financial Conduct Authority. We do not provide regulated mortgage advice. Our role is limited to the introduction and structuring of unregulated commercial finance.