Bridging finance
Discussion
I need some bridging finance or a 100% construction mortgage. I know I'm being a tad optimisitic here but I've just been quoted a ridiculous figure. So I'm seeking the advice of the PH collective.
We have just bought the derelict house next to our offices and want to build new offices and aparments above. The plot will allow for 1 huge ground floor office for ourselves and 4 apartments above.
We owe 97k on the land but it is worth about £150k. The lowest price for flats around here is £100k, but we don't want to sell them anyway. The office will be worth at least £100k so the building value will be about £500k. the build will be approx 150-200k depending on spec and material prices at the time so worst case is £300k cost against £500k value.
Any ideas where to start?
We have just bought the derelict house next to our offices and want to build new offices and aparments above. The plot will allow for 1 huge ground floor office for ourselves and 4 apartments above.
We owe 97k on the land but it is worth about £150k. The lowest price for flats around here is £100k, but we don't want to sell them anyway. The office will be worth at least £100k so the building value will be about £500k. the build will be approx 150-200k depending on spec and material prices at the time so worst case is £300k cost against £500k value.
Any ideas where to start?
ground, upper and loft space, 2 building firms have given finger in the air prices and i've added a bit on for good measure. My friend has just completed 13 well specced apts on 3 storeys for 515k, so i don't think they are too ambitious targets. West yorks isn't an expensive place to build at the moment.
Try Russell Gill at Dunbar (Leeds). He's off at the moment but if you speak to Natasha she will put you in touch with whomever is dealing with his workload.
On the basis of 97k land, 225k build (£65/sq ft roughly), 50k misc (interest payment, architect, etc, etc) then you're look at a return over 30% so they would definately be interested.
They charge approx. 3% over base & the payments roll over each month with interest accruing each month (so no repayment to make monthly).
Dealt with them in the past & they work well. You'd get an answer in principle within a few days. My only reservation is that at the moment there are a lot of people who don't want to lend on apartments.
Email me if you want his contact details (don't have them on me). I'll also send you some others who deal with development finance solely.
On the basis of 97k land, 225k build (£65/sq ft roughly), 50k misc (interest payment, architect, etc, etc) then you're look at a return over 30% so they would definately be interested.
They charge approx. 3% over base & the payments roll over each month with interest accruing each month (so no repayment to make monthly).
Dealt with them in the past & they work well. You'd get an answer in principle within a few days. My only reservation is that at the moment there are a lot of people who don't want to lend on apartments.
Email me if you want his contact details (don't have them on me). I'll also send you some others who deal with development finance solely.
Its irrelevant from thier point of view whether they are to be sold or to let. They are only interested in values upon completion, as they have a clause in thier contract which states you will not be allowed to let them out until thier debt has been paid back in full for the apartment in question, ie you would have to remortgage at the end of the build.
Tel no. for Leeds office is 0113 2454259. As stated previously, its Russell Gill you need to speak to but he's off at the moment. As such speak to Natasha who will put you in touch will someone else.
You'll need valuations from estate agents (preferably 2 or 3) on thier views on values upon completion. You won't need quotes for build costs as they will work it out on £/sq.ft.
Tel no. for Leeds office is 0113 2454259. As stated previously, its Russell Gill you need to speak to but he's off at the moment. As such speak to Natasha who will put you in touch will someone else.
You'll need valuations from estate agents (preferably 2 or 3) on thier views on values upon completion. You won't need quotes for build costs as they will work it out on £/sq.ft.
If true, that's odd (and a little fascinating) that a lender would accept an Architect's certificate, considering Architect's PI cover doesn't run for 10-years.
Secondly, it would also mean the full design would need to be done by an Architect and there won't be alot left of the £50k for 'incidentals' quoted earlier.
But that's getting a bit too off topic.
Secondly, it would also mean the full design would need to be done by an Architect and there won't be alot left of the £50k for 'incidentals' quoted earlier.
But that's getting a bit too off topic.
Edited by mk1fan on Tuesday 29th July 22:21
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