raising finance for property development - I.e. Un - mortgagable property?

(5 Posts)
utopian99 Sun 27-Jul-14 19:05:21

Will post this in property too but thought I'd try here. I have my own architecture practice, and dh and I also do small scale property development through it. To date this has been buying properties for between £80-140k with a mortgage and selling at an average £15k profit after refurb etc., but we're also looking at land, and Un - mortgagable property now. Ideally we'd raise finance for this rather than use other investments for cash purchases, but I'm new to this side of funding - bridging loans or business development loand or something along those lines. Each project is typically 4-6 months from completing purchase to completing sale.

ANY suggestions for fianance options that aren't mortgage based? This would allow us to buy similar things at lower prices as we'd only be competing with other investors in the non - mortgage brackets. .

financialwizard Sun 27-Jul-14 19:33:59

Land you can mortgage if building on it.

utopian99 Sun 27-Jul-14 23:29:26

Only if you buy land with permission already in place though I think. We'd be buying without planning in orderto ssecure permission and sell on at a mark up without building ourselves.

BookABooSue Thu 21-Aug-14 13:47:42

You can buy the land subject to planning, or put the planning application in prior to purchase. Or you can borrow against a business plan which shows how the land will increase in value after you've changed consent. Although the latter is less likely now than it was in the past. Banks are not keen on leding for development atm.

There are a few property networks that provide funding on a joint venture / crowd funding basis, or business angel networks.

I'm not sure where you are in the country but development land sales have slowed considerably over the last few years. From the basis of trying to secure a good percentage return, letting property is much better than development.

Hayleyktf Thu 21-Aug-14 18:23:14

Hi
I am looking to do up a property in brixham and then rent it as a holiday let. I figure I can get a mortgage if a few of us put in about 30k and of course we could also use the property. Let me know if you're interested, hayley

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