Having been offered a plot of land suitable for building four houses, what’s the best way to fund another development?
Funding new build developments is simple, you use a development finance lender to lend you 100% of the build cost and then you get creative on how you finance the purchase.
If you have a chunk of cash yourself for the deposit then the development lender will lend the rest. You don't need to be overly creative to make that work.
If you don't then a simple workaround is to bring the landowner into a JV with you:
You create the win for the landowner by giving them a percentage of the project profits via their SPV shareholding as a reward for deferring their payout until the end of the project.
This will need to exceed what they would have received from just selling the land at the front end of the project.
Lenders will want to see the planning approval notice, architect’s plans and a build cost and build time schedule.
A good broker will be able to find the right development finance for you (get in touch if you need help).
You can learn more here: