Permitted development expertise unlocks 2 major opportunities

Permitted development expertise unlocks 2 major opportunities



United Trust Bank has provided funding for two major permitted development schemes after gaining considerable experience in the field….


Specialist development lender United Trust Bank has provided funding for two major permitted development schemes after gaining considerable experience in the field…

Fact file:

Development Loan 1

Funding: £3.7m
LTV: 60%
Area: South London suburb
GDV: 60%
Units: 26

Development Loan 2

Funding: £2.9m
LTV: 60%
Area: Kent
GDV: 60%
Units: 30

Changes to permitted development rights have enabled the conversion of disused office space into residential uses, resulting in developers gaining more opportunities to transfer empty buildings into attractive apartment developments, often in prime town and city centre locations.

UTB was recently asked to consider a scheme involving a joint venture with a developer’s contractor after helping them with a successful conversion of offices into nine apartments.

The new project is set to create 26 units under permitted development rights in a South London suburb.

Following a visit to the site and due diligence on the contractor, UTB agreed a facility of £3.7m to assist with the purchase of the site at 65% purchase price, as well as 100% of the build costs, interest and fees which equated to 60% of the GDV.

The contractor then asked if UTB could fund them directly for a 30-unit permitted development rights scheme in Kent.

UTB offered funds totalling £2.9m within a couple of days to assist the purchase of the site at 55% purchase price, 100% of build costs, interest and fees, equating to 60% of the GDV.

The combined exposure totals at £6.6m secured across two sites with a total GDV of £11.1m.

The development is set to be completed before the deadline next May, by which time the permitted development schemes must be finished and sold.


 



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