Experienced developers will often maximise their profits by a skill known as ‘working the planning'. Many sites without planning permission and many with planning have, with the right blend of skill and knowledge, the potential to generate significant profit which the developer can capitalise on immediately by selling the site on once the requisite planning permission has been secured or go on to develop at in increased profit.

Sourcing funding for these sites is an area in which we have significant expertise and where funding is secured it is nearly always on a profit share basis (from 10% to 50%) due to the inherent risk. A lender will consider a number of issues in relation to its' current and potential value and will, at the developers expense, employ the services of a planning consultant to confirm the likelihood of a planning gain being achieved and importantly how long it will take to achieve it.

 

London

A facility of £1.5m was provided to a consortium to acquire a site without planning consent but planning was likely to be given for the residential use, as various discussions had taken place with planners whom were keen to see the site redeveloped. On the strength of information provided we obtained 95% of the purchase price of the site.

Yorkshire

A site in a railway cutting had outline planning only and to obtain detailed planning was going to be drawn out and costly procedure. In order that our clients could retain their capital for the detailed planning costs we arranged a facility of £450k being 90% of Purchase Price. The clients sold the site with detailed planning some six months later for £850k.