Property developers are now taking advantage of some great finance options and returning to the market to develop land. We have seen lenders coming back into development funding, as demand for housing rises and the economic outlook improves. Lenders will always look to lend to developers, if they can see a good exit market.
Here are recent examples of development enquiries we have been asked to fund:
• Developer with ‘mothballed’ site now feels the time is right to build-out. • Former care home with planning permission to convert to 8 residential apartments. • Homeowner with large side garden obtains planning consent to build a house on the plot. • Local builder had always built houses for other people but now wants to buy a site and build 4 houses to sell and make profit for himself. • Experienced landlord sees opportunity to buy development land and build houses to let and add to his portfolio. • Property investor gets planning consent to build another storey on top of an existing block of flats.
As you can see, development opportunities can be in very diverse situations. It’s not just property developers who can be approved. As long as you use a professional building contractor, or sub-contract to specialist trades, lenders will be pleased to consider your request for funding. All projects should have a recognised building warranty scheme, like NHBC or Premier Guarantee.
Our expert team of specialists will analyse all enquiries and usually be able to quote lending terms in most instances. To have a development enquiry assessed you will need to provide the following information:
1. A detailed description of the project 2. A recent CV to show experience in property developing (if a builder or property developer) 3. Statement of your business assets and liabilities (if a builder or property developer) 4. Statement of your personal assets and liabilities 5. Statement of your income and outgoings 6. Plans and drawings 7. Confirmation of Planning Permission
In most cases lenders do not even require to see proof of personal income, although in certain situations this could be requested. Lenders can take an existing property as collateral security if capital is short at the outset.
Great opportunities need great lending solutions!