Residential Development Finance

There is no doubt that as every day passes, the pressure on our present housing stock increases.  According to the latest report by the House Builders Federation, in the South  East of the country less than half the homes needed by local people are being built.  The knock-on effect is that the shortfall is costing 30,000 jobs and the number of families waiting for social housing has increased by 73% in a decade.  There is an enormous pent-up demand for housing but there are fewer than half the required number being built.  Not only the South East but the West Midlands and over most of the country.

Now, we know that the High St banks are not interested in residential development finance and there are many reasons for this.  Some banks perhaps lent recklessly and are keen to limit further exposure but, principally, it is because the banks have lost their expertise in this sector.  In short, no one in the banks understands residential development finance because anyone that did understand it has been retired or left the banks’ employment.  So where is the expertise?  Right here in the Commercial Mortgage Broker industry.  If I were to say that we could source 100% finance for a building project to include the land and without a profit share to the lender, some would say I was mad.  Everyone involved with All Property Finance is bank trained with the skills and contacts to make any residential development dream a reality.

This is a typical example of residential development funding that we are handling now.  A client bought a house that had been poorly converted into 2 x 2-bed flats with a double garage in South Londonand paid a little over £400,000 for the property.  Once he bought it, he got planning on the garden for 1 x 3-bed and 1 x 4-bed house.  We used the increased value of the site to take out the original loan of £400,000 and fund 100% of the build costsof £275,000 for the two houses.  Our lender also funded £30,000 to modernise the two existing flats.  It gets better because the client has put in for further planning to demolish the garage and build 2 x 2-bed houses on the site.  Our lender has already agreed to fund 100% of the build costs once that planning is approved.

No matter what your residential development scheme is, please give All Property Financea try.  There are absolutely NO UPFRONT FEES and no obligation to accept any offer of finance.  With our expertise we guarantee that any offer will be the very best available.