rranging Property are proving irresistible to
development finance for investors and buyers. A good
projects in inner city example of the perfect
areas is getting easier as more regeneration project would be an
lenders are waking up to the idea area like Stratford in London
that excellent profits can be with the 2012 Olympics being
made by helping property hosted in the area.
developers in regeneration areas.
Demand for property development
Areas of cities that are run down finance in regeneration areas is
but in good central location exceeding all records with
often present good investment property developers eagerly
opportunities, especially if they snapping up brownfield sites. It
are surrounded by more upmarket is far easier to develop a
areas which are already popular brownfield site than to try and
places to live. In these get planning permission on
regeneration areas property can greenfield sites. The location of
be found at very reasonable brownfield site makes property
prices, often up to 10% to 20% development funding more
lower than in the fully developed attractive as they are already in
area of the city. prime locations for amenities
such as shops, cinemas, bars and
However investors still need to employment.
do some careful research and
check there is a well-funded Planing restrictions on
regeneration plan in place. Areas greenfield sites means that
such as Stratford East in London, regeneration is the way forward.
parts of Manchester and inner Finance for property development
city areas of Bristol all have in these areas is very often
regeneration schemes in place and geared to the expected increase
in value once the whole site has development finance options
been finished. Although far more available it is vital that the
care is taken by the lender when builder tries to use a specialist
researching the risk involved in broker. The mainstream
this type of property residential mortgage broker is
development. Thorough sometimes tempted to dabble in
investigation of the local commercial finance, usually
regeneration plan will be carried attracted by the idea of large
out by the lender to ensure the commissions. In reality arranging
project falls within the local finance for property development
planners requirements. is a highly skilled job, and
relies on experience and personal
Mortgage lenders have improved contacts. Property developers
their product offerings to trying to arrange finance for
accommodate the inner city type regeneration projects are also
of property, this includes well advised to try to use local
helping property developers brokers wherever possible, this
arrange mortgages for residential is because a local broker is more
dwelling situated above likely to know of any regional
commercial premises. In issues which may adversely affect
particular the buy-to-let the project.
mortgage has really come into its
own in this environment. It is Central government funds, the EU
not unusual to see an entire and local authorities all often
development of apartment being try to encourage regeneration
snapped up by investors before schemes with subsidies and
the project is even ready for grants. Very often a scheme will
viewing. be enhanced by the provision of
improvements to local schools,
When researching the property hospitals and transport links. In
order to capitalize on positive
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About the Author:
Find out more about property development finance by talking to a commercial finance broker. Spectrum Business Finance have been arranging bridging finance property renovation for over 5 years and have the experience to accommodate most circumstances.
