Financing the conversion of offices to residential living
One of the government’s key initiatives to help solve the chronic housing shortage in the UK, is the introduction of Permitted Development Rights.
The purpose of this legislation was to effectively guarantee planning for former office blocks that have fallen in to disuse. This makes the buying process less risky to a developer wishing to take on these types of schemes. These properties often lend themselves perfectly to conversion to residential living, as the works required are mostly that of an internal fit out.
Another attraction of these properties to some developers and investors is that they fulfil their desire to Build for Rent rather than build for sale. These conversion and new build schemes are often referred to as PRS (Private Rented Sector) developments.
PF&D Limited have lenders who are very keen to fund these projects and some offer very high loan to cost products (up to 90% and beyond) and others offer very competitive terms.
Furthermore, where a developer wishes to retain the developed units on a Build to Rent basis then we have lenders who will provide not only the short-term loan facility for the development of the site but they will also provide the longer-term facility. This saves the developer / investor having to seek funds elsewhere to repay the development loan and of course there are additional savings in terms of legal costs and fees.