The banks remain somewhat unenthusiastic about lending for speculative property development, especially for amounts below £1m. Other lenders, including property specialists also seem to limit funding in this range unless the borrower is operating in the south-east or a major conurbation that is fast-growing and on their 'hit list'.

  • Panacea fill this gap for builders and developers, specifically seeking out borrowers under £1m who need short-term finance.

    Our costs of funding are higher than banks or specialist property lenders, so when you talk to us, we will try to find you a deal from that part of the market. However, if that cannot be done, and the project is viable for both you and us, we will be able to lend on it and that means you are in with a chance of profit after all.

    We will definitely assess your case if you are:

    Developing residential (not primary residence) and commercial new build

    Designing single and multi-unit developments

    Experienced, or a new-to-market developer

    Disadvantaged by a weak balance sheet or impaired credit


  • Some examples of where we have lent for property development:

    £50k advance to complete a new house where the contractor failed to complete the build

    £420k advanced to construct holiday cottages. The facility provided staged drawdown with interest roll up. We arranged refinance post completion, to enable the clients to retain and operate the properties as a holiday rental business operation

    £1.05m to build apartments in London. An initial drawdown was provided ahead of sign off on pre-commencement planning conditions, with the balance funding then provided on a staged basis and including interest roll up. Refinance was arranged post completion, to enable the client to retain the wider site for its investment return

    £140k to complete a part-built executive property

    £130k, at 110% loan-to-value, to enable the client to acquire a single unit development site pending sale of a separate asset, that we did not take a charge on

    £130k to complete a partially constructed block of apartments

  • Why us:

    We will review the wider market for development funding that costs less than ours

    We will consider lending against other assets you may have, to see if there are alternative choices for either cheaper funding or a higher level of borrowing

    If we are successful in that search, it could mean that you don't have to borrow from Panacea, or that you can reduce the level of funding required from us

    We will assess all the options for refinance after completion of the project, giving you a contingency plan alongside your own preferred exit strategy

    You deal direct with our decision makers - we are a small and highly experienced team

    Because of our wide and deep assessment process, we can consider lending more aggressively than would be the case for other principal lenders

  • Features of our development lending:

    Staged drawdown available

    Interest roll up available

    We will look to match our loan term with the expected development and sale/refinance timeline, to avoid, where possible, facility expiry and renewal

    Independent land/property valuations are not always required

    Open discussion with our underwriters throughout if plans or circumstances change, we will do our best to work these through and adapt our funding accordingly

    Underwriter site visits are undertaken to help us fully understand your project

    Where possible, we will work with the client's own project supporting professionals, to avoid where we can, any independent project monitoring cost and oversight requirement

  • My bank introduced me to the Panacea team several years ago and we have built a very strong working relationship. I asked them if they would be able to fund a combined conversion and new build project for my site in Walthamstow. The project was complicated by challenges in obtaining sign off to pre-commencement planning conditions. I was particularly impressed by the way Panacea was able to adopt a team approach to structuring the lend which involved joint meetings with me, my accountant and their solicitors. As a result of this, we were able to agree phased funding drawdown that enabled me to progress the project ahead of obtaining pre-commencement condition sign off, with further drawdowns post obtaining these, through to completion of the project. They were additionally able to work with me as the costings to the project changed and critically, to adapt funding during the project to enable me to acquire further property assets. Their flexibility throughout has been critical to success of the project, topped off by them securing me a superb long term funding package at completion of the build.

    Rob Richier - Director, The Warrant Officer Limited

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  • Download our Property Development Lending Guide



    Panacea Finance Solutions Ltd is an Appointed Representative of Victor Finance which is a trading name of Kingston Equity & Finance Ltd

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