CrowdProperty launches offering for developments without planning



CrowdProperty has unveiled a new product designed to assist developers in securing developments which have not yet received planning permission.

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The Planning Gain Finance product can be used for a range of projects, with a particular focus on the conversion of current built assets to residential use.

The lender can offer loans between £100,000 and £5m on terms from six to 24 months, with interest rates, LTCs and LTGDVs calculated on a case basis.

Once planning permission is granted, the facility will be converted into a development finance loan.

Developers may be required to undertake an abortive planning cost insurance policy to reduce the risk averse nature of this type of scheme. 

Loans under the new product will be arranged through the lender’s specialist property team, led by Victoria Lane, chartered town planner at CrowdProperty.

“This new product will offer a new way of financing projects which are yet to receive planning permission,” said Victoria.

“The ability to assist developers in this way is a new direction for CrowdProperty, and one which will enhance our current offering of development finance. 

“Property professionals with a proven record in achieving development proposals with the benefit of planning consent will benefit immensely from this service, and CrowdProperty is happy to have discussions with prospective borrowers regarding potential projects which may benefit from planning gain finance.”

Mike Bristow, CEO at CrowdProperty (pictured above), added: “Having launched [a] dedicated MMC finance product in 2019 and [also] offering bespoke structuring of finance products for any situation, the [introduction] of this new product strengthens our position as a market leading authority in development finance at the cutting edge of property market trends.

“As we look for more ways to unlock the power of SME developers, having funded over £350m of projects to date, we are working on a number of other initiatives behind the scenes to provide the very best support to property professionals to build their businesses more quickly and profitably, driving much needed spend on labour, materials and services in the UK economy.”



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