Describe the development precisely
Explain the existing site, proposed use and whether the plan is ground-up construction, conversion or refurbishment. Provide the address, title information, planning status and any conditions or dependencies. Identify the borrower, beneficial owners and the people delivering the work. A promising site or headline end value is not a complete lending proposal; the lender needs to understand how the project becomes a completed, saleable or lettable property.
Keep cost, value and leverage separate
Gross development value (GDV) is the estimated value of the finished project. Loan-to-GDV compares the debt with that estimate; loan-to-cost compares it with the relevant project cost basis. Neither ratio is a guarantee of funding or profit. Ask which costs the lender includes and whether the quoted loan includes retained interest and fees. Prepare a cost plan that shows land, construction, professional costs, finance, contingency and disposal costs distinctly.
Show equity and cash timing
Explain how much equity is available, where it comes from and when it can be contributed. Model payments against the programme rather than treating the total facility as day-one cash. A lender may release construction money in stages under agreed conditions; United Trust Bank describes project monitoring and subsequent staged funds within its lending process. Ask who pays invoices before reimbursement and how variations or cost overruns are funded.
Build a credible UK delivery team
Set out the developer’s track record and the proposed contractor, architect, surveyor and legal team. Describe who controls budget changes and how progress is reported to an overseas sponsor. Consultancy may coordinate an agreed reporting brief, but it does not replace technical supervision, contract administration or a lender’s monitoring surveyor. The lender will assess its own experience and delivery requirements for the transaction.
Stress the exit and programme
For a sales exit, test the achieved prices, selling period and release conditions rather than assuming every unit sells immediately at the appraisal value. For a rental or refinance exit, check likely rent, long-term borrowing requirements and the state the property must reach. Include time for practical completion, certification and legal work. Model delayed completion, increased costs and lower receipts to identify where additional equity may be needed.
Resolve overseas ownership before commitment
Identify the intended UK borrower and how an overseas sponsor will hold or support it. Ask legal and tax advisers about the structure, security and any guarantees or overseas-entity requirements. Discuss the country of residence and source of equity with Jack early. Published lender loan sizes or ratios are illustrations of individual criteria, not confirmation that an overseas sponsor or a particular scheme is eligible.