Development Finance Ltd launch “Permitted Development” Loans
Glasgow based Development Finance Ltd has launched a new finance product for the “Permitted Development” market in England. Permitted Development rights came into effect in April 2014 allowing the conversion of redundant agricultural buildings into residential dwellings, without the need for planning consent.
David Levitus, director of Development Finance Ltd commented:
“We have had an increasing amount of enquiries regarding development funding to convert farm buildings such as barns, sheds and byres which are no longer suited to modern agriculture. That is why we created a brand new product – Permitted Development Loans. This type of development finance is pretty specialised so we have launched a bespoke loan package that takes our clients through the lending and development process.”
While there are still planning procedures and regulations that must be met, such as noise impact, flooding risks etc, the Permitted Development Act allows disused buildings of up to 450 sq metres to be converted into a maximum of three residential units.
As a privately owned principal lender, Development Finance Ltd specialises in funding for small property developers and builders, and the company works closely with its clients providing a hands on personal approach to each project. With many years combined experience working with property developers, the company’s underwriting team is happy to give straight answers and recommendations to anyone considering “Permitted Developments”. Development Finance Ltd is also able to give recommendations on reputable builders and development partners.
“We have found in the farming sector, linking up farmers with the appropriate builder or developer can take a lot of the pressure off – knowing they are working with someone who has come from a recommendation.”
As the current legislation says the converted properties must be occupied by 30th May 2016 (although many predict this will be extended after the general election) Development Finance Ltd is being approached by increasing numbers of farmers and owners of derelict rural properties to convert their old buildings to residential dwellings. This has spurred the company on to create Permitted Development Loans for farmers, looking at each project on its own merit. Some are straight development projects, however many farmers are taking the opportunity to build holiday rental accommodation, which can provide a solid investment for the future and a steady stream of rental income to supplement the farm’s traditional agricultural business. With a limited window of time, enquiries will only increase throughout 2015.