Ground-up vs refurbishment development finance

The difference

Ground-up development finance funds the construction of new buildings on land that is vacant or cleared. You start with a site and finish with a building. Refurbishment finance, by contrast, funds work to an existing structure — retaining and reworking it rather than demolishing and rebuilding. Both fall under development finance, and both share the same core mechanics.

What they share

How lenders see the risk differently

The differences come down to certainty. A ground-up build carries construction risk from the ground up — groundworks, weather, longer programmes — so lenders look hard at experience and costings. A heavy refurbishment starts with a standing structure, which can be more predictable, but it carries its own surprises once walls come off. Where a project sits on that spectrum shapes which lenders are comfortable and how the facility is structured.

Lighter, non-structural work may not need development finance at all — a refurbishment bridge can be the better fit. The heavier and more structural the project, the more it points to development finance.

Match the finance to the build

Whether your project is a new build or a major refurbishment, the right lender is the one comfortable with that specific risk. Housn Capital introduces you to a specialist broker who can read the scheme and match it accordingly. Tell us about the build to get matched.

Frequently asked questions