Purchasing land is still one of the most lucrative options for investment for most people. Not only its value is bound to appreciate, but it is also a fixed asset that can be liquefied in times of need. Apart from purchasing land for developing personal property, it can also be used to earn huge profits by improvising the site’s usage.
However, all of us do not have the riches to buy land at our will which make us seek financial help. The good news is that there are property development finance solutions that will basically serve us our favorite property on a platter.
Many of us are still confused if banks provide finance for land or not? The answer is an absolute yes as financial institutions are ready to provide loans to customers who they find credible enough. Mostly, they are in a close-knit organization with developers and investors to provide help over property buying and development.
You are free to approach them for construction of almost any building like a mixed-use or commercial property, care homes, residential or retirement living projects. Basically, you can request loans for purchase, construction, and refurbishment of a property.
But, applying for a loan is much easier than successfully getting one. Several formalities which have to be completed in order to highlight your ability to repay the debt. Pre-planning is necessary as many sites come with planning permissions which makes them more expensive.
Furthermore, there are two types of land available for sale in UK- Greenfield land and Brownfield land. The former space of land is an unused area while the latter already has buildings on it. Hence, it becomes easier to get loans for Brownfield land.
Again, you should be very clear about the boundaries of the property you are interested in. Many people confuse fencing or other boundary markers with the legal borderline of the property. This additional step will save you from a lot of disputes and legal troubles down the line. This makes land survey essentials for preparing an application for a bank loan.
Most importantly, you must carry thorough research before taking any step forward as any underlying issue can put your investment down the gutter. Do not back down from letting the local authorities search and uncover issues related to the property. There could be government projects, water or drainage problems or some ownership disputes on the land you intend to buy, which makes research necessary.
Currently, the authorities are very strict towards environmental protection, and you might not get a green signal in case your chosen spot poses a threat to the environment. We advise you to consult a conveyancing solicitor experienced in land purchases to receive the best advice possible over a particular land purchase.
It could be overwhelming to conduct research, look for a land, get permissions and ensure that your development or purchase brings you value. Instead of doing everything on your own, depending on a dedicated banking partner with full-service, end-to-end solutions will be better.