Park development and expansion finance

How is a development facility sized and drawn?

A development facility is built around two numbers: the cost of the works and the value they create, often expressed as gross development value. Lenders usually express their support as a percentage of total cost and as a percentage of end value, lending up to a sensible limit on each, and the lower of the two tests tends to set the facility. The total commitment is agreed at the outset, but the money is released in stages that follow the build programme, so you draw what you need when you need it rather than borrowing the full amount on day one. This keeps the interest cost down, because interest is charged on the drawn balance rather than the whole facility.

Each drawdown is typically signed off by a monitoring surveyor who visits the site, checks progress against the programme and confirms that the costs claimed have genuinely been incurred. This protects the lender and, in practice, keeps the project disciplined. We help you build a realistic cost plan with a proper contingency, a drawdown schedule that matches your trade payments, and an interest assumption that reflects the likely build period. Where appropriate we structure interest to roll up so cash is not drained during construction. The aim is a facility that funds the works smoothly without leaving you short between stages. These figures are indicative only and are not an offer of finance.

What is the exit from development finance?

Development finance is short-term money for the build phase, so every facility needs a clear exit before a lender will commit. For a park expansion the most common exit is a refinance onto a longer-term park mortgage once the new pitches are completed and trading, because the additional EBITDA and the uplift in going-concern value support a larger, cheaper term loan that repays the development facility. An alternative exit is the sale of completed assets, for example selling sited holiday homes to private owners, which both repays debt and creates the recurring pitch-fee income that strengthens the term refinance.

We plan the exit at the same time as we arrange the build funding, because a development facility is only as strong as its exit. That means modelling the post-works EBITDA, sense-checking the end value with how a park valuer will read it, and lining up the likely term lender early so the refinance is realistic rather than hopeful. If your strategy relies on holiday-home sales, we make sure the sales assumptions are evidenced and conservative, since a credit team will stress-test them. By joining up the build money and the eventual park mortgage, we reduce the risk of being stranded on expensive short-term debt. For wider development funding beyond parks, our sister site Commercial Property Development Finance covers the broader market. All figures are indicative.

Can glamping and lodge expansion be funded?

Yes. Glamping and lodge schemes are among the most active areas of park development, and lenders that understand the sector will fund them, provided the numbers and the consents stack up. Glamping pods, safari tents, shepherd's huts and treehouses can be installed relatively quickly and can command strong nightly tariffs, which makes them attractive for adding income to an existing park. Lodges sit at the premium end, with higher build and siting costs but strong sales margins and pitch fees. In both cases the lender wants to see that the planning consent and site licence permit the intended units and occupancy, that the infrastructure can support them, and that the trading forecast is grounded in comparable evidence rather than optimism.

We help structure these schemes so the funding matches the build and the income matches the plan. For glamping, that often means a smaller, faster facility with a quick path to trading and a refinance once the units are earning. For lodges, it means aligning the drawdowns with the siting programme and the sales pipeline, since lodge income blends pitch fees with holiday-home sales margin. We present the consents, the cost plan and a realistic occupancy or sales assumption to lenders comfortable with leisure development. We do not give planning, legal or tax advice, and you should take your own professional view on consents. The figures we discuss are indicative and are not an offer of finance.

How important are planning and the site licence?

For development they are decisive. A lender funding new pitches or facilities needs comfort that the works are lawful and that the finished units can be occupied and earn as planned. That means an appropriate planning permission for the use and the number of units, and a site licence that permits the additional pitches and the intended occupancy pattern. Where consent is in place and unconditional, the project is straightforward to fund. Where it is outstanding, conditional, or relies on a variation to the existing licence, the lender will want to understand the risk and may stage funding so that the riskier works only proceed once consents are secured. Occupancy conditions matter as much as the headline permission, because they shape what the new pitches can earn.

We map the planning and licence position at the outset and present it clearly, flagging any conditions that a credit team will focus on, such as seasonal occupancy restrictions or pre-commencement requirements. Where a scheme depends on a consent that has not yet been granted, we can often arrange funding that releases in line with milestones, so you are not paying for capital you cannot yet deploy. We do not give planning or legal advice and you should rely on your own advisers for consents, but we make sure the finance is structured around the real position. The UK has around 6,200 holiday parks and roughly 440,000 pitches, according to UKCCA, Pitching the Value 2024, which gives a sense of the sector's scale. All figures are indicative.

How do we keep a build project on budget?

A development drawing money in stages succeeds or fails on the strength of its cost plan and its contingency. Before the first drawdown we work with you to pin down a realistic build cost, broken into trades and stages, with a contingency that reflects the type of work, since glamping and pitch infrastructure carry different risks from a new clubhouse or pool. We also build in a sensible interest assumption based on the likely build period and the drawdown profile, because under-estimating either is a common cause of a facility running short. A monitoring surveyor then tracks each stage, which keeps both the costs and the programme honest and gives the lender confidence to release the next tranche promptly.

Discipline during the build protects the exit. If costs overrun or the programme slips, the refinance onto a park mortgage can be delayed and the short-term interest bill grows, so we plan for headroom rather than a knife-edge budget. We encourage fixed-price or capped contracts where they are available, a clear schedule of payments that matches the drawdown plan, and early dialogue with the lender if anything changes. Construction-led projects with complex builds may also benefit from specialist support, and our sister site Construction Capital covers heavier construction funding. We do not give cost or project advice ourselves, but we structure finance that supports a controlled build. These figures are indicative only.