Serviced buiding plots future sales

quintain

Hi
My wife and I have received outline planning permission for 20+ serviced self build plots. BTW very legitimate full planning approval documents are available.

Now we need to find funds to put in the road, sewers etc.

How can I raise £500+k to put in the road, sewers etc.

We have contacted HCA who have a loan procedure for such as this but they are not the speediest of government departments.

Many prospective purchasers are pushing us to sell them a plot at this time (wonderful but a bit tricky as it is still a field).

Has anyone got ideas on "selling off plan" to get money in to start and complete road, sewers etc.

agrinnall

How much do you expect to make from selling the plots? If it's a lot more than the £500K you need now then with a proper business plan I would hope that a bank would at least consider lending.

G_M

Indeed.

This is clearly a significant business, and like any new business that needs upfront funding, a proper business plan presented to a bank should result in a loan.

I suppose an alternative would be to start a Ltd Company (or even create a Co-op?) and sell shares, perhaps to the prospective buyers.

teneighty

Usually the road goes in later as it would get destroyed by all the heavy construction traffic in the early stages. Of course you would have to get it marked out along with each plot and possibly a temporary road surface if it is likely to get churned up.

How about laying on the services to the first few plots and then extending it as the funds start to come in from the sales.

Well done by the way. Makes a nice change to see self build plots rather than just selling the whole site to one of the developers.

Algar

teneighty wrote: »

Usually the road goes in later as it would get destroyed by all the heavy construction traffic in the early stages. Of course you would have to get it marked out along with each plot and possibly a temporary road surface if it is likely to get churned up.

In some country's the whole estate has to be finished before the first building goes up, including all underground services, pricey business, it can take up to 20 years or more before all plots are sold and built on.

quintain

Thanks to all especially Teneighty
I am considering a stage release with a staged infrastructure cost BUT I may need to complete most of the road pad at initial build.

I will keep looking for a solution.