image of a scaled house design and builders for website J&J Commercial Finance ground up property development

Ground up Property Development

What are the types of property development?

There are generally three types of projects for property development and investment. They each differ in the amount of work, time and staff that will go into the project. However, what is considered light by some people might be considered heavy by others. The three types fit into three broad categories.

Light refurbishment is the simplest of the three, and it involves some improvements to the property but not structural changes to the layout or design of the property.

Heavy refurbishment involves more than just aesthetic changes; it includes structural changes to the external walls such as demolition or rebuild to change the layout.

Ground up property development is the most intensive of the three types, and most often starts with just a plot of land. Sometimes it is a building with just the walls remaining.

What type of experience is needed for ground up property developments?

Let’s take a look more closely at ground up property development, what is generally considered large multi-build projects. These types of projects are usually carried out by experienced builders or building company who already have a property portfolio. They buy the plot of land to build 5 or more houses. Experience gained in the past, even on a smaller scale will be considered by lenders.

What is the process for getting finance for ground up developments?

The finance process for ground up property developments is very similar to smaller projects. Here at J&J Commercial Finance we will do a fact-finding meeting with you, so we will ask for:

– statements of assets and liabilities;

– statements of income and expenditure;

– three months of bank statements;

– your company accounts;

– your property portfolio;

– where you are in the planning process (full or outline planning permission) and;

– the resale value (checked with an estate agent);

– examples of previous developments and build CV.

Some lenders don’t want to lend to large ground up developments but with all of the above information J&J Commercial Finance can place you with the correct lender for your needs.

What are the pitfalls of securing your own finance for ground up property developments?

Whilst it is tempting to go solo and secure finance by yourself for your project it is important to be aware that there can be problems. For example, the lender may pull the plug on finance at the 11th hour due to not fully understanding the needs of your project.

Here at J&J Commercial Finance we gather all the information in a fact-finding meeting with property developers, we then work with lenders to make sure that any deal offered is structured in the correct way so that finance can go ahead.

Here at J&J Commercial Finance we are committed to providing free, no-obligation independent specialist advice. So, whether you are looking for a buy-to-let mortgage or a mortgage for a bigger project get in touch with us on 07399 660 002 or send us a message. We will get back to you straight away to see how we can help put you in touch with a lender using our network of over 300 lenders.