Development Finance
Development Finance in Scotland
Scotland's different legal system means many English-focused lenders won't operate north of the border. We have specialist relationships with funds comfortable lending under Scots law — giving Scottish developers access to competitive terms that would otherwise be unavailable.
The Scottish Market
Different legal system, specialist lender knowledge required
Scotland operates under a fundamentally different legal system to England and Wales. Property security takes the form of a Standard Security rather than a legal charge, the land registration system is distinct, and property transactions follow different procedures. Land and Buildings Transaction Tax replaces Stamp Duty Land Tax, with different rates and thresholds.
The planning regime is also different — Scottish Planning Policy rather than NPPF, different use classes, and local development plans that follow a distinct process. These differences mean that many lenders on our panel who are active across England simply won't lend in Scotland. Their legal teams aren't set up for it, and their security documentation doesn't cover Scots law.
This is precisely where our specialist knowledge adds value. We maintain relationships with lenders who are specifically comfortable with Scottish security — including several funds, family offices and specialist development lenders who actively target the Scottish market. Edinburgh and Glasgow in particular have seen strong residential growth, with the central belt offering competitive development opportunities.
Scotland-specific considerations
- Scots law security — Standard Security rather than legal charge, requiring lenders with Scottish legal capability
- LBTT not SDLT — Land and Buildings Transaction Tax with different rates, thresholds and additional dwelling supplement
- Scottish Planning Policy — different use classes, local development plans and a distinct appeals process
- Limited lender appetite — many England-focused funds won't lend in Scotland, reducing competition for those who will
- Building Standards (Scotland) — different building warrant process and technical requirements to Building Regulations
- Competitive build costs — typically lower than South East England, improving development margins
By City
Development finance across Scotland — by city
Scotland's three main scheme economies — Edinburgh, Glasgow and Aberdeen — each have their own residential pricing, demand drivers and lender appetite. Here is how we approach each market.
Development finance in Edinburgh
Edinburgh has Scotland's strongest scheme economics — chronic residential undersupply, premium pricing, deep institutional appetite for BTR and PBSA. We finance apartment schemes, conversion projects, mixed-use and PBSA around the University of Edinburgh and Heriot-Watt. Senior debt to 65–70% LTGDV is the mainstream structure; forward-funded BTR and PBSA attract higher leverage and keener pricing.
Arrange a call on an Edinburgh scheme.
Development finance in Glasgow
Glasgow is Scotland's largest scheme economy by volume — broader residential pipeline than Edinburgh, more mid-market apartment schemes, expanding BTR pipeline and strong PBSA demand around the University of Glasgow and Strathclyde. Land values support solid scheme economics with disciplined cost control. Senior debt, mezzanine and forward funding all work for the right Glasgow schemes.
Arrange a call on a Glasgow scheme or use the calculator.
Development finance in Aberdeen
Aberdeen's development market has rebased over the past five years as the energy sector has transitioned. Mid-sized residential schemes, conversion projects and selective city-centre apartment developments are the active pipeline. Lender appetite is solid for schemes with disciplined cost plans, clear exit strategies and credible sponsor track records. Senior debt to 65% LTGDV is the typical structure.
Arrange a call on an Aberdeen scheme.
What We Fund
Typical Scottish schemes
From Edinburgh New Town conversions to Glasgow regeneration, central belt housing and Highland developments — we structure funding across Scotland.
Edinburgh Residential
New build and conversion schemes in Edinburgh and the Lothians. Strong residential values, conservation area constraints and high buyer demand.
Glasgow Regeneration
City centre and waterfront regeneration opportunities. Growing institutional interest in build-to-rent and PBSA across Greater Glasgow.
Central Belt Housing
Family housing across the central belt — from Falkirk and Stirling to Ayrshire and Lanarkshire. Competitive land values and steady demand.
PBSA
Purpose-built student accommodation near Edinburgh's and Glasgow's universities. Institutional-grade schemes with forward funding structures.
Conversions
Commercial-to-residential conversions in city centres and town centres. Including listed building conversions requiring specialist lender appetite.
Affordable & Social
Scottish Government affordable housing programmes and registered social landlord partnerships. Grant funding integration with development finance.
Scottish Coverage
Lenders active across Scotland
Our lender panel includes specialist funds and family offices who are specifically comfortable lending under Scots law security. This includes lenders providing senior development finance, mezzanine, bridging and equity for Scottish projects.
We produce development appraisals and cashflows that reflect Scottish-specific cost assumptions, LBTT calculations and local market evidence. When we present your project to lenders, they receive a complete, Scotland-aware package — not an English template with the numbers changed.
Lender Panel
Scotland-Active Lenders
Minimum Facility
No Upper Limit
Funding Solutions
Finance products for Scottish developers
All of our finance products are available for Scottish projects, structured with lenders who understand Scots law security requirements.
FAQ
Scotland development finance — common questions
Property development loans in Scotland — what's typical?
Property development loans in Scotland in 2026 typically run senior debt up to 65–70% LTGDV (with stretched-senior to 75% available for stronger schemes), term 12–36 months matching the build programme, and interest rolled up so there are no monthly payments during construction. Leverage and pricing vary by scheme size, location (Edinburgh and Glasgow typically attract keener terms than rural Scotland), sponsor track record and exit route. Forward-funded BTR or PBSA carrying a contracted institutional buyer at completion attract higher leverage and keener pricing.
What is a development loan in Scotland?
A development loan in Scotland is a short-term secured facility that funds the construction or conversion of property. The lender provides a total facility; money is released in tranches as construction progresses (land on day one, then construction draws against monitoring surveyor sign-off), interest is typically rolled up rather than paid monthly, and the loan is repaid when units sell or refinance onto term debt. Scottish property law differs from English law in some respects — we work with lenders comfortable with the Scottish legal regime and standard security framework.
Developing in Scotland?
We have lenders specifically active under Scots law security. We'll structure your funding, model the LBTT implications and present your project to lenders who genuinely understand the Scottish market. No fact-find forms — just a conversation.
Other UK Regions
Development finance across the rest of the UK
We work across every UK region and the Crown Dependencies — each with its own development pipeline, lender appetite and scheme economics. Explore the other regional desks below.
Related reading
Development Finance Rates in 2026
Senior debt, mezzanine and equity rates across the UK market this year — plus where we expect them to land in H2.
Read the 2026 rates guide →