{"id":13458,"date":"2023-02-10T11:20:43","date_gmt":"2023-02-10T03:20:43","guid":{"rendered":"https:\/\/www.dev.articusfinance.com\/uncategorized-us\/experienced-developer-purchasing-land-without-planning-for-an-18-unit-project"},"modified":"2023-08-11T00:02:28","modified_gmt":"2023-08-10T16:02:28","slug":"experienced-developer-purchasing-land-without-planning-for-an-18-unit-project","status":"publish","type":"post","link":"https:\/\/backup.articusfinance.com\/us\/case-studies\/experienced-developer-purchasing-land-without-planning-for-an-18-unit-project","title":{"rendered":"Experienced developer purchasing land without planning for an 18-unit project"},"content":{"rendered":"<h2 style=\"font-size: 15px;\"><span style=\"font-family: Verdana, Geneva, sans-serif; color: #134f5c;\"><strong>The case in brief<\/strong><\/span><\/h2>\n<p><!--more--><\/p>\n<ul style=\"font-size: 13px;\">\n<li>Land value: \u00a35m<\/li>\n<li>Build cost:\u00a0 \u00a33m<\/li>\n<li>GDV: \u00a321m<\/li>\n<li>Initial bridge of \u00a34.22m (65% LTV)<\/li>\n<li>90% of the build cost through development finance<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 13px;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\"><br \/>\nThe UK Government has continued to increase investment into infrastructure,housing and has relaxed planning regulations, showing its eagerness to keep building new homes and to keep the UK property market a first-class investment. On top of this, in recent years, development finance lenders have become significantly more competitive, aiding borrowers. <a href=\"\/us\/guides\/property-development-guide\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\"><span style=\"font-weight: normal;\">Download our guide for more information.<\/span><\/span><\/a><\/span><\/p>\n<h2 style=\"text-align: justify; font-size: 15px;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\"><span style=\"color: #134f5c;\"><strong><br \/>\nOur client<\/strong><\/span><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 13px;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">Articus recently assisted an experienced developer with their project. The client was looking to purchase land without planning permission in Surrey with the idea of securing planning permission for 18 apartments within 6-8 months. The asset in question was valued at \u00a36.5 million, and the idea was to build 18 flats on the site which would cost \u00a38.3 million, with an expected Gross Development Value (GDV) of \u00a321 million.<\/span><\/p>\n<p style=\"text-align: justify; font-size: 13px;\"><span style=\"font-family: Verdana, Geneva, sans-serif;\">However, our client faced a common problem experienced by developers: buying land without planning consent. Of course, this is considerably riskier than land with planning, therefore lenders are restrictive.<\/span><\/p>\n<h2 style=\"text-align: justify; font-size: 15px;\"><span style=\"color: #134f5c; font-family: Verdana, Geneva, sans-serif;\"><strong><br \/>\nOur solution\u00a0<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">Articus Finance was able to navigate the hurdles and ensure the necessary financing. We secured a <a href=\"https:\/\/backup.articusfinance.com\/us\/bridging-loans\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\"><span style=\"font-weight: normal;\">short-term bridging loan<\/span><\/span><\/a> to buy the land and obtain planning permission at 65% loan to value (\u00a34.22m). Once the planning was in place, our broker secured development financing to pay back the bridge and 90% of the build costs. This gave the client the financial assistance they needed to move forward with their development without having to put all of their liquid assets into the project.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px;\">The success of this case study illustrates the importance of securing the right <a href=\"https:\/\/backup.articusfinance.com\/us\/development-finance\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #45818e;\">development financing<\/span><\/a> for your project. This is where the skills and expertise of Articus Finance come into play. We understand the complexities of development finance, as well as the motivations of developers. <\/span><span style=\"text-decoration: underline; color: #45818e;\"><a style=\"font-family: Verdana, Geneva, sans-serif; font-size: 13px; color: #45818e; text-decoration: underline;\" href=\"https:\/\/backup.articusfinance.com\/us\/contact\" target=\"_blank\" rel=\"noopener\">Get in touch today.<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The case in brief<\/p>\n","protected":false},"author":1,"featured_media":13459,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[61],"tags":[],"class_list":["post-13458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-studies"],"acf":[],"jetpack_featured_media_url":"https:\/\/backup.articusfinance.com\/wp-content\/uploads\/2023\/02\/pexels-jiyoung-kim-4513940-scaled.jpg","_links":{"self":[{"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/posts\/13458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/comments?post=13458"}],"version-history":[{"count":0,"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/posts\/13458\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/media\/13459"}],"wp:attachment":[{"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/media?parent=13458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/categories?post=13458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/backup.articusfinance.com\/us\/wp-json\/wp\/v2\/tags?post=13458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}