Hybrid lending options needed as low hanging permitted development fruit taken – Sirius

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  • 23/05/2019
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A lot of the low hanging fruit available for permitted development rights (PDR) property has already been taken and developed, according to Sirius Property Finance.

 

Speaking on Specialist Lending Solutions Television in association with Aldermore, the broker noted that this was driving investors to become more creative.

Sirius Property Finance founder Robert Collins noted that this creativity was fuelling a need for more flexible and hybrid type products from lenders.

“A lot of our clients have completed a lot of those [permitted development] schemes already,” he said.

“The thought anecdotally is that a lot of the low hanging fruit in the PDR space has been taken.

“So now we’re seeing examples where our clients are identifying properties that maybe held for a year, two years or three years as a commercial investment with a view then to develop.”

He noted borrowers were then finding it difficult to obtain funding for this.

“There’s an area then where we struggle to get the right finance, because it’s not really a commercial loan, it’s not a long-term investment, and it’s not really a development loan because they are not going to develop here and now,” Collins continued.

“So we are sometimes struggling to get the hybrid product to develop those types of schemes.”

 

 

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