Property development comes in many different shapes and sizes, but one thing every project has in common is the need for money. In this post, we’ll discuss how to get funding for property development.
Property development can be an exciting and lucrative endeavour, but before the project starts, you must first have the necessary funding in place. There are several ways to attain the funds you need to purchase a property and cover the cost of renovation, so it’s always a good idea to shop around for the best option to suit your needs. Below we’ll talk about how to get funding for property development and how HBB Solutions can make your property dreams a reality.
Commercial mortgages are used to purchase commercial property such as shops, warehouses and offices — basically, anything that isn’t private, residential property. They work the same as private mortgages, helping you spread the cost of a large purchase over time (generally a number of years). However, if you want to develop residential properties or need additional funding to redevelop a commercial property, you may want to explore other options.
The most simple commercial mortgages are taken out by existing enterprises that want to purchase the premises where the business already operates.
If you are looking to buy and refurbish a property with plans to rent it out for several years, buy-to-let mortgages can be an ideal solution. Buy-to-let mortgages are similar to residential mortgages because you need a certain level of income to qualify. This figure will determine the amount of money you can borrow. Like a residential mortgage, buy-to-let mortgages are also restricted to one property.
If you are looking to expand your portfolio or want to begin a development project that includes several properties, you will need to look for other sources of funding. Although buy-to-let mortgages aren’t suitable for properties that require substantial development, they are a good way to get your foot on the development ladder.
Part Exchange (PX)
Part exchange schemes (PX) are great for developers or builders that want to help their customers sell their current property and move into a new one as quickly as possible. A PX will help you to avoid the unwanted delays or expenses common to regular house sales such as expensive agency fees and broken property chains.
A part-exchange allows you to grow your business while ensuring your customers are happy. If you require a quick and hassle-free sale to fund a property development, a PX could be the best answer.
Offering efficient property part exchange schemes can help increase your value and reputation as a developer to your existing customers and potential clients. Part exchange schemes give you a lot more control when it comes to meeting deadlines and more freedom to establish time frames that suit your needs.
HBB Solutions’ guaranteed purchase service allows developers to sell a property as quickly as possible while avoiding many of the hassles of the property market. If you have a client who is finding it difficult to sell a property or they want to complete the sale as quickly as possible, we will make a guaranteed offer on the property (regardless of its condition) and in the process, ensure time and money are saved.
When it comes to property development, the latter is especially vital as you cannot afford to lose funds unnecessarily during a project and delays can have an impact on the project and your reputation as a developer.
Why Choose HBB Solutions?
Selling a property can be a complicated process where a lot of money hangs in the balance. It’s for this reason that it’s vital to work with a company that is reliable and trustworthy when it comes to services such as part exchange (PX) and quick house sales. At HBB Solutions, our team of vastly-experienced property specialists have the funds to purchase properties all over England, Wales and Scotland.
We purchase hundreds of properties and work closely with many renowned companies across a range of industries such as:
- Estate agencies
- New house building
- Asset management
- Property development and renovation
- Retirement home building
Our team of experts are vastly experienced in the purchase of properties for residential and commercial use. So whether you’re a property developer looking to enhance your portfolio with a new project, or someone about to embark on your first project — our team can help you raise funds by selling property.