Development finance lenders assess the project first, the borrower second. This means the document pack is denser, more technical, and more scrutinised than bridging. A missing cost plan or unverified GDV assumption will stop a deal in underwriting. A planning condition that hasn’t been discharged will cost weeks. This article sets out what lenders actually need and why.

What forms the core development finance pack?

The minimum pack for a development finance submission contains nine documents. No lender will progress without all nine. They are:

  1. Deal summary / project overview — One to two pages. Site location, planning status, build programme (start and completion dates), total build cost, GDV, profit margin (as a percentage of GDV), and exit route (sale, refinance, hold). This is the first thing the lender reads. It must be accurate and consistent with all other documents.

  2. Planning permission and decision notice — The actual decision from the planning authority, not a summary. If the permission is recent and conditions are attached, a compliance schedule showing which conditions have been discharged and which are still live. If seeking funding for permitted development, pre-application advice from the local authority in writing.

  3. Architect’s drawings and site plan — The drawings must match the planning permission exactly. Include site plan, ground and upper-floor plans, elevations, sections, and any specialist drawings (e.g. structural, M&E schematics if required by planning). The drawings must be stamped as approved by the planning authority if the permission was conditional on their submission.

  4. Schedule of Works (SoW) with cost breakdown — Itemised by trade and phase. Breaking down cost by major elements (excavation, structure, envelope, M&E, finishes, external works) is standard. Breaking it further by trade (plumbing, electrical, mechanical, carpentry) is preferred by lender QS teams. Include labour, materials, plant hire, preliminaries, and contingency as separate line items.

  5. Quantity Surveyor (QS) report or cost verification — An independent professional assessment of the cost plan. Lenders will not accept the developer’s cost estimate or a contractor’s quote as cost evidence. A QS report compares the SoW against industry benchmarks, BCIS data, or recent comparable projects. If a contractor has been appointed, a cost report from that contractor’s QS is acceptable but must be verified by a third-party QS appointed by the lender.

  6. Development appraisal / financial model — The project economics in detail. GDV (either from comparable sales evidence or, if units, from current market valuations), less total development cost (land acquisition, build, professional fees, finance costs, contingency, marketing, void period interest), equals profit. Express this both as a cash figure and as a percentage of GDV. Most lenders expect to see 15-25% profit on GDV for development finance. The model must be clear enough that the lender’s analyst can interrogate every assumption.

  7. Proof of site ownership or acquisition — For owned land: title register, title plan, and recent proof of legal ownership. For off-market acquisitions: heads of terms or a signed purchase agreement showing exchange and completion dates and purchase price. Lenders will not lend until legal title is confirmed or a binding acquisition agreement is in place.

  8. Borrower development track record — A schedule of previous developments completed by the borrower. For each project: location, type (e.g. residential, commercial), number of units or GDV, completion date, and final value. This must be evidenced: lender will ask for completion documents, final valuations, or sale completions to verify. New developers or those with gaps in track record are higher risk and will face more scrutiny.

  9. Company documents — Certificate of incorporation, current articles of association, accounts for the last two years (or one year if recently incorporated), and a confirmation of directors statement. If the borrower is an SPV set up specifically for this project, articles showing the purpose and structure of the SPV.

Beyond these nine, most lenders will ask for professional team details, guarantor information, and site valuation evidence. These are secondary but expected.

What do lenders assess first in a development finance pack?

Lenders work in a fixed order. Planning comes first. Cost comes second. Exit comes third.

Planning — The lender’s solicitor will verify that the planning permission is valid, unchallenged, and all conditions can be discharged before drawdown. A planning condition requiring agreement from a third party (e.g. highways authority, drainage board) is a red flag if that agreement has not been obtained. Build timescale is extracted from the planning decision (especially if there is a condition requiring commencement within a set period).

Cost — The lender appoints its own QS to verify the cost plan. This is non-negotiable. The QS will challenge the SoW line by line, compare it to BCIS benchmarks for the building type, and check it against recent projects of similar scope. If the SoW does not align with the approved drawings, or if the cost per square metre is an outlier, the QS will ask for a revised estimate or will apply a reduction. Contingency is capped at 10% of build cost by most lenders.

Exit — The GDV assumption is tested against comparable sales. For residential units, the lender will require 3-5 recent comparable sales from the same postcode or immediate vicinity. For commercial development, lease agreements from pre-let tenants (if available) or evidence of market rental rates. A GDV that sits above comparable evidence will be challenged and reduced, which erodes profit and may trigger a further equity injection from the borrower.

What documents do most development finance packs lack?

Three gaps appear repeatedly.

No independent QS verification of cost — Developers sometimes submit a contractor’s estimate or an in-house cost plan without third-party QS review. Lenders will not proceed. The cost plan must be signed off by a QS with professional indemnity insurance and evidence of recent experience with similar building types. If a contractor has been appointed, that contractor’s QS report is a start, but most lenders still require a separate verification from their appointed QS.

Planning conditions not discharged — Conditions such as discharge of pre-commencement conditions, approval of surface water drainage, or construction methodology are often left outstanding at application. Lenders will not release drawdown funds until these are signed off. A schedule showing each condition and its discharge status is essential. If conditions are outstanding, include a timeline for discharge agreed with the local authority.

GDV assumptions without comparable evidence — Unit prices that are higher than recent similar sales in the same area are common. Lenders will accept a modest uplift (2-5%) based on improvements or location advantage, but anything beyond that requires market evidence. This usually means obtaining a professional valuation or a market report from the selling agent. Unsupported GDV assumptions will be reduced during underwriting, which may create a shortfall in loan cover.

How does the document pack differ from bridging finance?

Bridging finance is underwritten on exit value and the borrower’s exit plan. Bridging lenders want a clear sale agreement, chain timing, or a refinance timeline. The source of repayment is external.

Development finance is underwritten on project completion and cash generation. The lender is financing the construction process itself. This means the document pack is weighted toward project control, not exit timing. The schedule of works, the contractor’s appointment, the build programme, and the QS’s cost sign-off matter more than they do in bridging. The borrower’s track record in completing similar-scale projects matters more than their net worth or asset base. And the lender will retain security over the works as they are constructed, so the pack must include evidence of site ownership and evidence that the lender’s interests can be registered against the property.

When are professional reports required in a development finance pack?

Quantity Surveyor (QS) report — Always. This is mandatory.

Environmental and contamination report — Required if the site is on brownfield land, or has a history of industrial or commercial use. Lenders will ask for a Phase 1 environmental assessment (a desk-based assessment of historical use and potential contaminants). If the Phase 1 identifies risk, a Phase 2 site investigation (intrusive testing) will be required before drawdown.

Highways and utilities report — Required for new-build residential schemes and commercial schemes where site access, drainage, or utility connections are novel or complex. The report confirms that highways access is suitable for construction vehicles and that utilities can be connected to the site.

Structural engineer’s report — Usually not required at application stage unless the site has existing structures that will be demolished or incorporated. If submitting architect’s drawings with structural schemes, engineer sign-off on those drawings is sufficient.

Project manager or construction manager appointment — Most lenders expect this for projects above £2m. Evidence that a qualified PM or CM has been appointed, or will be appointed before drawdown, is reassuring to lenders.

Checklist: What to include in your development finance pack

Project documents

  • Deal summary / project overview
  • Planning permission and decision notice
  • Planning conditions compliance schedule (if conditions are attached)
  • Architect’s drawings (site plan, floor plans, elevations, sections)
  • Schedule of Works with itemised cost breakdown
  • QS cost verification report (signed by independent QS)
  • Development appraisal and financial model
  • Comparable sales evidence (for GDV assumptions)
  • Site valuation report (current value, not GDV)
  • Build programme / project timeline

Legal and ownership documents

  • Title register and title plan
  • Proof of ownership or signed purchase agreement
  • Solicitor’s report on title (if available)

Borrower and guarantor documents

  • Company certificate of incorporation
  • Articles of association (or SPV structure document)
  • Accounts for last two years
  • Confirmation of directors statement
  • Personal guarantor information (if required by lender)
  • Borrower development track record (previous projects with valuations and completion evidence)

Professional team documents

  • Architect details and PI insurance certificate
  • Contractor appointment letter or heads of terms (if appointed)
  • QS appointment letter
  • Solicitor details
  • Any other professional (engineer, PM, CM) appointment evidence

Specialist reports (if applicable)

  • Environmental Phase 1 report (brownfield sites)
  • Highways and utilities report (new-build residential or commercial)
  • Contamination survey (if Phase 1 identifies risk)