There are many disused rural properties that can be converted into much needed residential property, but many of these properties come with complex issues.
A recent example of this was a disused BT repeater station near Buxton, Derbyshire. There were rights of way issues on the land where the building was situated, there was no road access and no utility connections. The flat roof could have damp problems and planning permission had lapsed.
Many developers would not undertake a project of this nature because of these issues, but this did not deter an enterprising developer.
Due to the complex nature of the project, many large lenders were not prepared to provide finance. A specialist bridging lender took just three hours to decide to provide a £150,000 bridging loan. The property valuation was done two days later, and legal work finished soon afterwards.
The developer also had to provide a detailed action plan. Planning permission for change of use was reinstated and conversion work commenced a month after purchasing the property.
The roof was inspected and found to be sound. The right of way issue was sorted out and a borehole made to provide a water supply.
Unlike many large mainstream lenders, alternative lenders do not have flexible lending criteria. They are prepared to look at each loan application individually and work with borrowers to find solutions to complex issues that affect a property deal. Bridging lenders can also provide funds quickly for time-sensitive deals.
