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Lismore House, 28b Wilton Road, Reading, RG30 2SS.
Development finance experts Money For My Business have announced a marked increase in interest from property developers looking to purchase repossessed and failing development sites.
Ann-Marie O’Neill of Money For My Business explained:
“During the property boom many property developers came into the market and bought sites with tight profit margins which have now been eaten away due to increased funding costs and funding extensions due to lack of new build sales. Some property developers find themselves in a situation where the lender has called in the loan or costs have increased so much that they need to sell up now, sometimes in mid-build, or face bankruptcy.”
With property developers on the look out for ready-made fast turnaround projects, these repossessed sites, with planning permission and with infrastructure ready, seem too good to miss. As enquiries for site repossession purchases are up more than 50% on the same time last year, the team at Money For My Business have been asked to quote on the same site more than once.
Ann-Marie goes on to explain: “Property developers looking at these sites should be aware that getting the purchase price right is the key to getting finance for the project. Lenders are much more risk adverse right now and are looking for much more profitable projects, sometimes as much as 25% after all costs. This can be difficult to achieve if purchasing a partially finished repossessed site as the vendor needs a certain price to clear their existing borrowing.”
The team at Money For My Business can still access finance for experienced property developers that, dependent on final site value, offers up to 100% of the projects build costs and 60% of site purchase price.
Money For My Business is currently offering UK Property Developers a free review of their property development finance needs. To access your free review call Money For My Business directly on 0845 034 5120
0845 034 5120
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