For a small to medium property developer, obtaining land to build houses on is not an easy task, due to the banks failure or refusal to lend money for development purposes.
The banks have in the past agreed to lend up to 70% for building projects but are now lending less than 50% – on a good day. This leaves property developers having to find the balance of the cost of building from their own resources, which is not easy. For the government to pretend that there is a pool of new houses being built in the Thames Valley is wrong.
Property developers are being forced to resort to more imaginative ways of producing land and finding development land, such as:
- Entering into joint development agreements with existing property owners and building on gardens and side plots for which the owner receives a share of the profits when sold.
Joint developments with Local Authorities.
- Building in phases so that profits from the last property built helps fund the next property.
Converting run down blocks of flats to provide refurbishments.
- Refurbishment of old houses to produce a larger property with extensions.
Our commercial property solicitors have vast experience of development land and developments and can assist any would be property developer with imaginative projects.
Nick Powe, Senior Property Solicitor