How Staged Development Drawdowns Work
Funding Released as the HMO Project Progresses
Development finance is not usually released in one lump sum.
The initial drawdown may help fund the purchase, with further funds released in stages as the HMO development work is completed.
Before each drawdown, the lender may require:
- A site inspection or monitoring surveyor’s report
- Evidence that the agreed work has been completed
- Updated costs and progress against the schedule of works
- Confirmation that the project remains within budget and on track
Drawdowns are commonly paid in arrears, meaning you may need enough working capital to fund each stage before reimbursement.
We help structure the facility around the project timeline, build costs and planned exit onto a longer-term HMO mortgage.
