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Toolkit

Cost stack & development finance

The committed cost picture, line by line, with the finance modelled on a drawdown profile rather than the full facility from day one.

Acquisition

£
£

SDLT / LTT / LBTT

% of land

Construction

£
£
%
£

CIL, s106, building control

%

Facility

%
% pa
% of debt
% of debt
months

Cost stack

Land price£380,000
Acquisition taxSDLT / LTT / LBTT£18,500
Acquisition fees2% of land price£7,600
Build cost£714,000
Abnormals & externals£60,000
Professional fees10% of build + abnormals£77,400
Statutory (CIL, s106, BC)£45,000
Contingency7.5% of build + abnormals£58,050
Finance interesteven drawdown profile£69,312
Arrangement fee£17,687
Exit fee£8,844
Total before finance£1,360,550
Finance total£95,842
Total development cost£1,456,392

Funding

Debt at LTC£884,358
Equity required£476,193
Peak debt (incl. rolled interest)£953,669
Hard cost£774,000
Soft costFees, statutory and contingency£180,450

Interest is approximated using a weighted average drawn balance over the term (front-loaded, even or back-loaded), which is a sensible planning figure but not a cashflow. Lenders will run their own model on a month-by-month drawdown schedule, and their fee structures vary. This is not lending advice or a facility offer.