In the last few months, UK Property Finance has substantially increased its involvement in locating the funds needed to cater for the surging demand for development and major renovations requiring finance. UK Property Finance, which is a trading style of Penuptra Consulting Ltd., is a directly FCA-authorised and regulated business focusing almost entirely on niche area funding. The company has an enhanced reputation of being a “one-stop” financial shop where brokers and members of the public alike can, with one simple telephone call or email, access a wide range of property-related finance expertise and money. The offering includes brokering for residential, commercial, BTL, and equity release first charge mortgages, secured second and third charge loans, general insurance products, and first, second, and third charge, etc., regulated and unregulated bridging loans that can be secured on solely or a mix of land, property, or commercial units.
As part of its drive into the development funding arena, UK Property Finance has in recent months become involved in a multi-apartment, mixed-use, 3-stage development on the south coast of England. The client, a recently formed limited company where the directors have a huge amount of experience and specialise in obtaining planning permission for difficult sites and projects, agreed to a purchase price for the brownfield site, subject to eventual planning approval. They then spent the next 2 years putting in much time, effort, and money to obtain formal approval. With the planning now agreed upon, the value of the land had increased substantially, way beyond the price our client had originally agreed to pay the seller, and as such, this made the proposal very advantageous to our client, and, as you would have thought, many lenders. Our client then trawled through the normal high-street bank culprits in an attempt to locate the development finance required to complete the project before selling the already pre-sold units, but unfortunately, for one reason or another, our client was rejected.
Luckily, UK Property Finance was then recommended to our client via his local bank. Due to the increase in valuation, we submitted the case to one of our large and varied panel of commercial lenders and managed to enable the size of the purchase loan available to be based on the actual valuation of the land (with planning), not the purchase price (which was without planning). This pretty much meant that our client, who had already spent a substantial amount of time and money obtaining the planning permission, could now purchase the land without any further down payment from themselves.
The achievement of planning also increased the land value to such an extent that our client required minimal remaining financial input to complete the build prior to the properties being sold off to pre-agreed purchasers.