Bridging Finance News:- Building homes above train stations, shops and converting disused buildings is to become easier with the government announcing new permitted development rights from the Summer.
The ministry of housing, communities and local government said developers would be able to demolish vacant commercial, industrial and residential buildings and replace them with homes.
Our Bridging Finance range covers auction purchases, to private sales and all levels of refurbishment works. Bridging finance is ideal when you need funding fast, with minimal fuss or paperwork.
| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. |
1% -1.5%
Full fee added to
the loan. |
| Semi Commercial
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial
Including Light Refurbishment
|
Up to 70%
Lower of PP or MV |
0.75% pm | ||||
| Residential
Heavy Refurbishment
|
Up to 75%
Lower of PP or MV |
0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial
Heavy Refurbishment
|
Up to 70%
Lower of PP or MV |
0.83% pm | 0.83% pm | 0.7% pm | ||
Housing Secretary Robert Jenrick said: “I want everyone, no matter where they live, to have access to affordable, safe, quality housing and live in communities with a real sense of place – as part of our mission to level up, unite and unleash the potential of this country.”
The government is launching a new register of brownfield sites in April to encourage councils to get this land back in use. The chancellor, Rishi Sunak, announced £400m to help ambitious mayors, such as the West Midlands authority’s Andy Street, do this.
Local authorities who don’t have an up-to-date local plan by December 2023 could face government intervention to ensure sufficient homes are built in their area. Councils who are building enough new homes would be rewarded with more funding under the new homes’ bonus.
Planning overhaul imminent
A white paper is expected in the Spring with proposals to speed up the planning process so homes can be built more quickly. Rebates for planning applications successful at appeal and greater transparency on land options are proposed.
“We must think boldly and creatively about the planning system to make it fit for the future, and this is just the first step, so we can deliver the homes communities need and help more young people onto the ladder,” said Mr Jenrick.
The government said it would adopt a new approach for calculating local housing need in favour of greater building to reach the 300,000 a year new homes target.
The Federation of Master Builders described digitisation of the planning process as “a victory for common sense”.
Chief executive, Brian Berry, said: “I’m pleased to learn the secretary of state will engage particularly with small to medium-sized housebuilders to ensure the new system works for them. Key to increasing the volume and quality of new homes coming through is reversing the decline in small housebuilders.”
Another £1.1 billion in local infrastructure for transport, utilities, schools and hospitals was announced in yesterday’s budget. The government claims this would enable up to 70,000 new homes to be built.
Bridging Finance by HZA
Brokers Hank Zarihs Associates said a commitment to help fund infrastructure was something the property development funding sector supports as it would make it easier for sites to be developed.
A future homes standard requiring 80 per cent lower carbon emission for all new homes is expected to come into play from 2025, which the Home Builders Federation said it welcomed.
Up to four new development corporations around Bedford, St Neots/Sandy, Cambourne and Cambridge are set to be created subject to public consultation. The government sees the Oxford-Cambridge Arc as a hotpot for environmentally friendly developments offering housing for people in high-productivity jobs.