Manchester Development Finance Services
From senior debt to JV equity, we arrange the full spectrum of development finance for property developers across Greater Manchester. Our panel of 50+ specialist lenders ensures competitive terms for every scheme type and deal size.
Where We Fund Development Across Greater Manchester
Our development finance services cover every part of Greater Manchester. Explore the map below to see active development hotspots and typical deal sizes across the city-region. Visit our Ancoats, Salford Quays, or NOMA area pages for location-specific lending insights.
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Senior Development Finance in Manchester
Senior development finance is the cornerstone of property development funding in Manchester and the most commonly used facility type across Greater Manchester's active development market. A senior development loan is a first-charge facility that funds the acquisition of a development site and the construction costs required to deliver the completed scheme. In the Manchester market, senior facilities typically cover up to 70% of the total development cost (LTC) and up to 65% of the gross development value (GDV), with interest rates ranging from 7.5% to 10% per annum depending on borrower experience, scheme type, and location.
Manchester's senior lending market is one of the most competitive in the UK outside London. A deep pool of active lenders — including high-street banks, regional challengers like Together Money and Assetz Capital, specialist development lenders, and private credit funds — creates genuine pricing competition for quality schemes in strong locations. For well-structured deals in proven Manchester development hotspots such as Ancoats, Salford Quays, and NOMA, lender appetite is particularly robust and terms can be highly competitive.
Typical senior development finance deal sizes in Manchester range from £500K for smaller conversion and refurbishment projects to £15M for larger new-build residential and BTR schemes. The sweet spot for most specialist development lenders in the Manchester market sits between £1M and £8M — a bracket that covers the majority of the city's active development pipeline. For schemes above £10M, we access institutional lenders and syndicated facilities that can accommodate larger ticket sizes while maintaining competitive pricing.
Our senior development finance service handles the entire process from initial appraisal through to drawdown. We assess your scheme against current lender appetite, package your application to maximise the likelihood of approval, and negotiate the best possible terms across our panel. Learn more about our step-by-step process, use our development finance calculator to get an initial estimate of what your Manchester scheme could borrow, or contact us for a detailed discussion about your specific project.
Stretch Senior Finance in Manchester
Stretch senior finance is a single first-charge facility that extends beyond the traditional 70% LTC cap of standard senior development loans, typically reaching 80-85% of total development costs. For Manchester developers who want to maximise leverage without the complexity of layering mezzanine finance behind a senior facility, stretch senior represents an increasingly attractive option. The product has grown significantly in popularity across the Greater Manchester market over the past three years, driven by a combination of rising build costs and developers' desire to preserve equity for future projects.
In the Manchester market, stretch senior finance is most commonly used by experienced developers with strong track records who are delivering scheme types that lenders are comfortable with — typically residential new builds or straightforward conversions in established locations. Lender appetite for stretch senior is strongest in proven development zones where comparable evidence supports robust GDV assumptions. Areas like Ancoats, with its deep pool of completed comparable sales, or Salford Quays, with its established BTR market, tend to attract the most competitive stretch senior terms. For conversion finance projects, stretch senior can be particularly effective when the existing building provides strong asset backing.
Typical stretch senior deal sizes in Manchester range from £1M to £10M, with pricing reflecting the additional risk the lender takes at higher leverage. Interest rates for stretch senior facilities in Manchester typically range from 9% to 12% per annum, with arrangement fees of 1.5-2%. While more expensive than standard senior debt, stretch senior is significantly cheaper than combining a senior facility with a separate mezzanine loan, as it avoids the intercreditor complexity and dual fee structure that layered funding involves.
Our team has arranged numerous stretch senior facilities for Manchester developers, and we maintain strong relationships with the lenders most active in this space. We understand which lenders will stretch to 85% LTC for the right borrower and scheme profile, and we know how to present your deal to maximise the leverage available. If you are an experienced Manchester developer looking to optimise your capital efficiency, stretch senior finance could be the ideal solution. View our case studies to see examples of stretch senior deals we have structured across Greater Manchester.
Mezzanine Finance in Manchester
Mezzanine finance is a second-charge loan that sits behind the senior development facility, allowing Manchester developers to increase total borrowing from the typical 65-70% LTC of senior debt to 85-90% of total project costs. This higher leverage is achieved by layering a mezzanine tranche on top of the senior facility, with the mezzanine lender taking a subordinated position and charging a higher interest rate to reflect the increased risk. For Manchester developers seeking to minimise equity input and maximise return on capital deployed, mezzanine finance is a powerful tool.
The Manchester mezzanine market is well-served by a range of specialist providers. Private credit funds, family offices, and specialist mezzanine lenders maintain active programmes across Greater Manchester, with particular appetite for residential schemes in established development zones. Mezzanine pricing in Manchester typically ranges from 12% to 18% per annum, depending on the overall leverage, borrower track record, and scheme quality. While the headline rate is higher than senior debt, the blended cost of the combined facility is often more attractive than the total cost of equity for the same proportion of the capital stack. Use our development finance calculator to model your blended borrowing costs.
Mezzanine finance is most commonly used for larger Manchester development projects where the equity requirement of a senior-only facility would be prohibitively high. A typical application is a £10M scheme where senior debt covers £7M (70% LTC) and the developer wants to limit their equity contribution to £1M rather than the £3M that would otherwise be required. A £2M mezzanine facility bridges this gap, taking total debt to 90% LTC and freeing the developer's capital for other opportunities.
Successfully arranging mezzanine finance in Manchester requires careful coordination between the senior and mezzanine lenders, including the negotiation of an intercreditor agreement that governs the relationship between the two facilities. Our experience in structuring layered facilities across Greater Manchester means we can manage this process efficiently, ensuring both lenders are aligned and the overall terms work for the developer. We frequently structure combined senior-plus-mezzanine packages for schemes in high-demand areas like NOMA and the Ancoats corridor, where strong GDV fundamentals support higher leverage positions. See our how it works guide for a full breakdown of the process.
JV Equity Partnerships in Manchester
Joint venture equity partnerships offer Manchester developers an alternative to traditional debt financing by bringing in a capital partner who contributes equity in exchange for a share of the development profit. JV equity is particularly valuable for developers who have strong deal-sourcing capability and operational expertise but lack the capital to fund the equity component of larger schemes. In the Manchester market, where development opportunities are abundant but competition for sites is fierce, JV equity can be the difference between securing a deal and watching it go to a better-funded competitor.
The Manchester JV equity landscape includes institutional investors, family offices, high-net-worth individuals, and specialist property investment funds — all seeking exposure to the Greater Manchester residential development market. Manchester's strong fundamentals — population growth, rental demand, institutional investment appetite, and sustained regeneration — make it one of the most attractive regional markets for equity investors. Typical JV structures involve the equity partner funding between 70% and 100% of the developer's required equity contribution, with profit splits ranging from 50/50 to 70/30 in favour of the developer, depending on the deal dynamics.
JV equity partnerships work particularly well for Manchester developers targeting larger schemes where the equity requirement would otherwise exceed their available capital. A developer with a £15M scheme might secure £10.5M in senior debt (70% LTC) but face a £4.5M equity gap. A JV equity partner could fund £3M of that equity, leaving the developer to contribute just £1.5M while retaining 60% of the profit. This capital efficiency enables ambitious Manchester developers to pursue multiple schemes simultaneously rather than tying up all their capital in a single project. Explore our Castlefield and Deansgate area guides to see where JV equity is most active.
Our JV equity service goes beyond simple introductions. We help Manchester developers structure deals that are attractive to equity partners — modelling returns, stress-testing assumptions, and presenting opportunities in a format that institutional and sophisticated investors expect. We also negotiate the JV agreement to protect the developer's interests, ensuring fair profit splits, clear decision-making frameworks, and transparent reporting requirements. Whether you are looking for equity for a single scheme or a programmatic partnership for a pipeline of Manchester developments, get in touch to discuss how we can connect you with the right capital partner.
Development Exit Finance in Manchester
Development exit finance is a refinancing product that replaces the senior development facility at or near practical completion of a Manchester development project. The purpose is twofold: first, to reduce the interest cost from the higher rate of a development loan to the lower rate of a term or investment facility; and second, to release equity from the completed scheme, freeing capital that can be deployed into the developer's next project. For active Manchester developers managing a rolling pipeline of schemes, exit finance is an essential tool for capital recycling and portfolio management.
In the Greater Manchester market, development exit finance is particularly relevant for developers delivering build-to-sell residential schemes where the sales period extends beyond the original development facility term. Many Manchester senior development lenders charge penalty rates or default interest once the facility term expires, creating significant cost pressure for developers who have not sold all units by practical completion. An exit facility replaces that expensive debt with a lower-cost product, typically at 6-8% per annum compared to the 10-12% penalty rates that can apply under an expired development loan.
Typical development exit facilities in Manchester are structured as 12-month term loans, giving the developer ample time to sell remaining units without the cost pressure of expensive development debt. Loan-to-value ratios on exit finance typically range from 65% to 75% of the completed scheme value, with pricing between 6% and 9% per annum. Deal sizes range from £500K for smaller schemes to £10M+ for larger residential developments. The key metric for exit lenders is the ratio of loan to completed value rather than the development cost metrics that are relevant during the construction phase.
We have structured development exit facilities for numerous Manchester developers, helping them reduce carrying costs and recycle capital more efficiently. Our knowledge of the Manchester sales market — average absorption rates, price-per-square-foot trends, and buyer demand across different locations — enables us to advise developers on optimal exit timing and present compelling cases to exit lenders. Whether you are approaching practical completion or already sitting on completed unsold stock, our team can help you find the most cost-effective exit solution. View our case studies for real examples of exit finance deals across Greater Manchester, or learn about the full development finance process.
Permitted Development Finance in Manchester
Permitted development (PD) finance is a specialist funding product designed for Manchester developers converting commercial properties to residential use under permitted development rights — without the need for full planning permission. The expansion of PD rights through Class MA (commercial, business, and service to residential) and earlier Class O (office to residential) provisions has created a significant pipeline of conversion opportunities across Greater Manchester, particularly in suburban town centres and secondary commercial locations where office and retail vacancy rates have increased. See our dedicated conversion finance page for more detail on this growing sector.
Manchester's PD landscape is distinctive. The city centre itself has Article 4 directions that remove many PD rights for certain use classes, but the surrounding nine GM local authority areas offer extensive PD opportunities. Stockport, Bolton, Rochdale, Oldham, and Bury all have significant stocks of commercial property that can be converted to residential under PD rights, and lender appetite for well-located PD schemes in these areas is strong. The key for successful PD finance in Greater Manchester is understanding which local authorities have Article 4 restrictions, which locations offer strong residential demand for converted units, and which lenders have a genuine appetite for PD schemes at different price points.
Typical PD finance deal sizes in Greater Manchester range from £300K for smaller above-shop conversions to £5M for larger former office buildings. Lending terms are similar to standard development finance — up to 70% LTC with senior debt, with the possibility of stretch or mezzanine for experienced PD developers. Interest rates tend to be slightly higher than for new-build schemes, reflecting the additional risk that conversion projects can carry in terms of unforeseen structural issues and the sometimes challenging layouts that PD conversions produce.
Our team has arranged financing for numerous PD conversions across Greater Manchester and understands the specific challenges and opportunities that PD schemes present. We know which lenders are comfortable with PD risk, which surveyors have experience valuing PD conversions in the Manchester market, and how to structure applications that address the concerns lenders typically have about conversion projects. If you have identified a PD opportunity in Greater Manchester, we can provide an initial assessment of fundability and likely terms within 48 hours. Contact us to discuss your scheme, or use our loan calculator for an instant estimate of what your PD conversion could borrow.
Available Across Our UK Network
Every development finance product listed on this page is also available across our Construction Capital network of regional specialist sites. If you are developing outside Greater Manchester — or running projects across multiple UK cities — our network of local experts can provide the same depth of market knowledge and lender relationships in London, Birmingham, Leeds, Bristol, Sheffield, Cardiff, and Nottingham. One relationship, nationwide coverage, genuine local expertise in every market.
Whether you need senior development finance for a scheme in Leeds, mezzanine for a London project, or JV equity for a Birmingham development, the Construction Capital network has you covered. Speak to Matt about how our cross-network capability can support your multi-regional development strategy.
Which Finance Type Is Right for Your Manchester Scheme?
Not sure which development finance product best suits your project? Our team will assess your scheme and recommend the optimal funding structure — free of charge, with indicative terms delivered within 48 hours.
Or explore our how it works guide and case studies to learn more about how we fund Manchester developments.