Crowdproperty Launches Planning Gain Finance Product
Published by CrowdProperty on 14th September 2021 -
At CrowdProperty, we’re dedicated to continuously innovating and improving our service offering – as such, we are delighted to announce the launch of our Planning Gain Finance product. Our newest service line affirms our commitment to partnering with ambitious SME developers, providing innovative financing solutions as a result of our extensive property development and investment experience.
Our Planning Gain Finance will assist developers in securing developments which have not yet received the benefit of planning permission. There are few lenders in the market which currently offer such a product and those that do may not have the detailed in-depth planning knowledge to be able to add significant value. CrowdProperty is an expert development lender with over 250 years of property and development expertise: our Specialist Property Team is made up of professionals with a passion for property and backgrounds in surveying, agency, managing their own property development projects and planning with our in-house Chartered Town Planner, Victoria Lane MRTPI, bringing over 15 years’ experience in the planning industry. Victoria has worked for local government, private consultancy and client side with Morris Homes, so understands the commercial aspects of project development. She regularly advises clients on the benefits of planning gain.
Planning Gain Finance is primarily provided on commercial to residential opportunities or small infill opportunities within the development boundary - subject to planning policy, there is scope to extend the product to new build developments adjoining settlement boundaries in the longer term. Developers may be required to undertake an Abortive Planning Cost Insurance policy to reduce the risk averse nature of this type of development. This insurance policy would protect the LTVs in a planning refusal scenario. Once permission has been granted and the necessary pre-commencement conditions discharged, the developer would be converted onto a CrowdProperty Development Finance Loan.
Victoria Lane, Chartered Town Planner at CrowdProperty, commented: “This new product will offer a new way of financing projects which have yet to receive planning permission. The ability to assist developers in this way is a new direction for CrowdProperty which will enhance the current offering of development finance. Property professionals with a proven record in achieving development proposals with the benefit of planning consent will benefit immensely from this service and CrowdProperty is happy to have discussions with prospective borrowers and developers regarding potential projects which may benefit from Planning Gain Finance.”