How to acquire land and building funding for your property development
Below are some common scenarios when a business may consider Development Finance:
- Undertake a self-build on undeveloped land you already own. Did you know that you can access funds to cover 100% of the build costs as you go along?
- Completely rebuild your current home or property you own following a demolition and re-design.
- Complete a barn conversion.
- Convert a commercial property to residential.
- Renovate an auction property or a currently un-mortgageable property.
- Convert a single build house or multiple houses.
- Buy or build business offices to rent out.
- Buy land – a percentage of the land purchases costs can also be financed.
Metis Funding Solutions can guide you through the funding process towards the right funder to move your development project forward.
The Market
The expectation is that interest rates will remain at the current level well into 2024 with resilience in the Residential Sector fading, although the picture in the rental market remains good with strong demand and relatively constrained supply.
Transactions within Commercial Property are tracking down vs last year mainly due to retail, however prime office capital values are seen as being broadly unchanged and rents for prime offices are anticipated for a modest rise.
Another area of interest is the appeal of alternative assets with expected growth for rental particularly in housing related products (Build To Rent (BTR), student).
At the same time, although the Construction Sector is subdued, it is still expected to grow over the coming year led by workload within the infrastructure and industrial sectors.*
*RICS Economy and Property Update Aug 2023
A client scenario – Development Finance:
Overview:
Director of several businesses inherited a property portfolio with no borrowings outstanding and regular rental income. The director’s other businesses were in the construction sector, but he had experience of property development.
Solution:
MFS was able to secure him a development loan using one of the properties in the portfolio to allow him to purchase and develop a new property which was then added to the rental portfolio. The director is now on his second property, and this will also be added to the portfolio when complete.
If you’d like to find out how we can help you and your business, simply get in touch with us today – paula@metisfunding.co.uk
Published: October 5