One of the critical aspects of property development is securing development finance. The mayor of London, Sadiq Khan, recently set aside £12.8 million of his Land Fund to purchase a hospital parking lot, which is set to be a future property development for over 200 houses. Not every property developer, however, has access to a Land Fund. At ProBuyToLet, we aim to take the fuss out of the application process in order to allow developers more time to focus on what they do best. Our team of highly skilled property finance professionals bridge the gap between developers and financiers.
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Development Finance Property Must-Haves
It’s been a year since the implementation of the online deed signing service which is powered by blockchain technology. This is undoubtedly a step forward in what can be considered a tedious process. For developers, this small step forward in the registration process means that payday comes a little earlier, however, there are a number of things that need to happen before the registrations start taking place.
While the land is the first hurdle developers need to jump over, there are other requirements that need to be satisfied before even approaching a financier for development finance support. For starters, it’s important to check that the zoning requirements of the property has been met prior to drawing up plans and involving other professionals. It may require a meeting with council to clarify. We ensure that you know which steps to follow before even approaching a financial institution for development finance.
Development Finance Institutions To Consider
One of the biggest things to consider before approaching a financier or anyone you may consider to fund your project is knowing what type of projects they would like to get involved in. One of the better examples of being back by a financier who understands a particular type of development is the sustainable development popping up all around the country. Ecovillages are a little different to the ordinary brick-and-mortar, and finance for these developments can be tricky. Instead of following the traditional routes, at ProBuyToLet, we will get you in contact with a funder that fits your particular development’s niche.
Other niche development consideration includes those particularly set up for retirement, young professionals, or starter families. Although these are a little more broad-based, they will have different requirements and amenities on the premises, which not every real estate financier will want to get behind. All these different types of developments will require confirmation that you have the skillset to perform. It’s also important to meet the regulatory requirements in order to mitigate the funder’s risk.
Development Finance Calculator
To successfully land development finance, the development itself has to make financial sense. For property developers, Brexit has done a number on their figures as uncertainty prevails. Not only is it the fear that property prices will drop, but there is also the consideration that labour costs and materials might increase, tenant issues with visa requirements might arise, or even that rezoning complications might occur. Other cost considerations include an increase in taxes or stamp duty and even the possibility of new licence requirements. At ProBuyToLet, our property professionals provide developers with exclusive access to rates that are only applicable to professional mortgage brokers. For the developer, this is one development finance calculator they don’t need to pull out.
Development finance is a simple process when you deal with professionals. ProBuyToLet allows developers to focus on their projects by taking the headache out of the paperwork. Contact ProBuyToLet today to experience a smooth financing process.
One of the biggest contributors to a delay in the development process, is the lack of information to process a request. Property finance, whether the finance for the entire development or mortgage finance for an individual property, requires basic documents to satisfy the needs of the investor or lender. For the applicant, this process can be cumbersome, especially when the requirements are not entirely known or they’re not sure where to find them.
Those in the know are well aware that there are a number of avenues to approach to secure finance, and not all of them are the traditional lending routes that developers have become accustomed to. It’s therefore, imperative to vet and verify all income sources to ensure that the development continues without a hitch. With our help, property developers and other professionals in the real estate industry will find the navigation process a little less tedious. Our team of property finance professionals will take you through the requirements and help make sense of the entire process.