How To Raise Money For A Residential Development

How To Raise Money For a​ Residential Development
From building one or​ two homes on​ a​ small plot,​ to​ a​ fully-fledged residential development,​ it’s important that you have the​ right finance in​ place,​ or​ your project can ground to​ a​ halt.
Acquiring land and derelict buildings for residential development is​ a​ key trend in​ the​ UK housing market .​
Demand for housing coupled with a​ lack of​ available land means that developers need to​ be creative with their plans in​ order to​ provide well-built housing that fits in​ with the​ local community.
If you are new to​ this type of​ development,​ or​ you are planning an​ unusual or​ large project,​ one of​ your first considerations is​ how to​ finance it .​
You could get a​ regular loan or​ mortgage,​ but these are often not available for development purposes and lenders may not be happy to​ loan as​ much money as​ you require .​
If you have been developing property previously,​ you may have money in​ the​ bank,​ but this is​ not usually enough to​ buy the​ land or​ property and then to​ develop it.
There are specialist finance agencies who are experts in​ providing finance for developments .​
These companies have experience in​ assessing the​ development potential of​ a​ site and in​ forecasting returns from it,​ which means they are happy to​ lend development capital .​
Some of​ the​ benefits of​ using this type of​ finance include:
• Flexibility – a​ specialist will be able to​ lend you the​ money for a​ term that suits you; from as​ little as​ a​ month to​ help with bridging loans,​ to​ the​ whole period of​ your development.
• Expertise – a​ good development finance company will understand your plans and ask about your expected returns and your timescale .​
Their attention to​ detail can help you to​ refine your plans.
• Bespoke finance – Talk to​ one of​ these specialist companies about your plans for the​ development .​
Your loan and any repayments can often be tailored to​ the​ scale and length of​ your project,​ rather than imposing harsh conditions and time periods.
It makes sense to​ use a​ specialist finance company if​ you’re planning any sort of​ development .​
Not only can you easily raise the​ money you need,​ but the​ loan can be tailored to​ your particular project and you can benefit from the​ company’s expertise and advice.

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