Hackney Development Finance Calculator
Use our free development finance calculator to estimate your maximum facility size, total finance costs and projected profit on your Hackney development project. Adjust the inputs to model different scenarios and find the optimal funding structure for your scheme.
Estimate your facility size, interest costs and project profit
Get Accurate Terms for Your Project
Our calculator provides useful estimates, but every development is unique. Submit your project details and receive personalised indicative terms from our panel of 50+ lenders within 24 hours.
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How to Use the Development Finance Calculator
Step 1: Enter Your Project Costs
Input the purchase price of your site or property, estimated build costs from your quantity surveyor, and professional fees (architect, planning, legal). These combine to form your total project cost, which determines the Loan to Cost (LTC) calculation.
Step 2: Set the GDV
The Gross Development Value is the expected market value of your completed development. For Hackney projects, research comparable sold prices in the local area. The GDV cap limits how much a lender will advance as a percentage of the end value.
Step 3: Adjust Finance Parameters
Set the LTC and GDV percentages based on your lender terms. Typical Tower Hamlets development finance offers up to 70% LTC and 65% GDV. Adjust the monthly interest rate (currently from 0.65% pm) and loan term to match your build programme.
Step 4: Review Your Results
The calculator shows your maximum facility (the lower of LTC and GDV caps), total interest cost based on a staged drawdown assumption, the 1.5% arrangement fee, and your estimated profit and return on investment. Use these figures to assess project viability.
Understanding Development Finance in Hackney
Development finance is a specialist short-term lending product designed specifically for property development projects. Unlike a standard mortgage, development finance is drawn down in stages as construction progresses, meaning you only pay interest on funds actually utilised. This staged drawdown approach is reflected in our calculator, which estimates interest based on an average 65% drawn balance throughout the project term.
For Hackney property developers, understanding the two key lending metrics is essential. The Loan to Cost (LTC) ratio measures the loan against your total project expenditure, while the Gross Development Value (GDV) cap limits lending to a percentage of the completed scheme value. Your available facility will always be the lower of these two calculations.
Hackney offers exceptional development opportunities across areas such as Dalston, Hoxton, Stoke Newington and Shoreditch. Strong property values and ongoing regeneration make the borough attractive to lenders, often resulting in competitive terms. However, each scheme is assessed individually based on planning status, developer experience, and scheme viability.
This calculator provides a useful starting point for assessing your development finance requirements. For accurate, personalised terms tailored to your specific Hackney project, contact our team for a free, no-obligation quote. We source from over 100 specialist development finance lenders to find the most competitive deal for your scheme.