As a broker of finance, we don’t just deal with mainstream banking as we get asked to finance the unfinanceable sometimes and we need to be creative. One such situation presented itself recently where a landowner who is heavily borrowed is looking to get planning permission to develop a plot of land into residential properties. The cost of doing this over a two-year period is £200k.
He is very confident of getting the planning permission, because the land agent who would facilitate and get the planning for the land owner offered to get the planning on a no win fee of £400k.
The farmer has approached us, and we have found a source of finance that will charge £25k interest only over a two-year period secured by a second charge on land and property. So, for a cost of £225k the farmer is now employing the agent to carry out the application on his behalf and turn land worth £10k/acre into land that should be worth £250k /acre minimum. There is always a risk of not getting planning permission, but the odds are quite good if that agent was prepared to back the proposition initially.
Don’t assume it cannot be financed. There is always some lending institution out there willing to lend at a price. Contact Ed at email@example.com and let us find the finance! You’ve just got to assess whether the price and conditions attached are worth the risk!
Midwest Consulting Limited is regulated by the Financial Conduct Authority and is a registered credit broker FRN793780. Midwest Consulting Ltd is a member of the NACFB.