Does anyone know if you get a mortgage to build a few properties on a plot of land, or go for a business loan?

A friend and I have chance to buy a plot of land for a cheap price which has planning permission for 3, 3bed houses..
Can anyone point me in the right direction to get started?

Cheers

 

The bank wouldn't lend me money for a plot to build a house, had to get a Bond sorted out, anyone cuold then get the cash and bugger off! then the bank had nothing to secure it against.

Cheers

Paul

 

Fuck! so is a bond the only way?

 

you can easily get a commercial mortgage for this, if you intend to sell all 3 houses?

ive just built 3.....

 

JTECHSAFF you have pm buddy

 

So what kind of bond are we looking at?

I know a sweet plot of land, planning permission for 4 houses plus car park, in a very quiet place. Never thought it would be possible forme to just lend the money? Take it you need to go in with plans etc....

 

yep...it takes time, but can be done if its viable....

best bet is find a trustworthy mortgage shop a discuss your options....

 

I use mortgagesforbusiness for all my finanical business needs. They could probably sort u out some development finance BUT the lender will want to know details of builders, times scales, projected profits etc and probably want to sit down with the key people involved etc. My advice would be to give them a ring / have a look at their website as a starting point.

They've helped me out brilliantly over the years

 

Pics or STFU ... I would actualy like to see them James..

How was it to do as a project as i would be interested in this in a few years time.

 

exactly... the lender will tell you what they need to see....go see them,have a brew and talk it over...

 

four years from plot to plan to finish.... bloody hard work,stress, but worth it in the end... il get a pic....hold on

 

nice 1 geoff

 

heres my 2 bedroom starter homes, valued at 190k each......how the hell is that a starter home?

 

still the odd bit of finishing off to do, butr we live in one...with the biggest parking area for shonkey

 

Look excellent mate! Fair play!

 

I hope I don't sound cheeky but isn't 4 years a long time to build 3 houses? I thought it only took a few months per house. How long did it take to buy the plot??

 

it took 2 years to get the sewer diverted by south west water,, about a year of actual building work, as we had old fuel tanks in ground to remove(garage petrol station beforre!) 6 months for ground surveys to measure soil contamination.....not a straight forward one....

 

thats the building trade for you. never seen a job finished on time yet in my 20 years. best thing is the original quote was probably only about 3 months

 

Wow they are very nice J mate well done

 

You can get 70% loan to value on the plot and 75% loan to value on the projected sales price of the completed properties. If you are a first timer the bank may want an independent monitoring surveyor but may allow your architect to have that role.
The business loan will in staged payments with a drawdown as the while the plot is being developed its going up in value.
Steer clear of Barclays as they are the sons of Satan
Nat West/RBS I highly recommend

 

Don't you mean borrow , the youth of today