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13-05-2009, 06:22 PM
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Developing mortgaged buy to let property
Can anyone advise me of the way to go about developing a buy to let property.
The house is placed on a large plot which could easily be developed by demolishing the existing house and replacing it with 3 or 4 semi detached/ terraced homes. I have the planning permission but am unsure how the btl mortgage provider will feel about his security being demolished? Probably a bit miffed I feel. Raising development capital is no problem but any good ideas re: buying out the btl? 
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23-05-2009, 10:03 AM
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Hi Timash,
you could apply for a development mortgage (a specialised mortgage for which you'll have to go through a specialised broker). Many devlopment mortgages will cover the costs for land and development up to a value of 70% of the GDV (gross development value) - or in plainspeak - what the development will be worth once its finished. The terms of the mortgage will vary depending on a number of factors such as your experience, value of development once finished deposit, etc and I beleive the money is often released in stages rather than all at once like a residential mortgage. I'm not an expert but half an hour googling "property development mortgages" should provide you with a valuble education. Happy developing.
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16-09-2009, 11:00 PM
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Hi Timash,
Depending on what the finished units will value up at you could try bridging finace to pay of you BTL mortgage and cover the bulk or all of the development, with a view to switching to cheaper borrowing on or near completion of the units. good luck. _________________ PortfolioGate.com ...solutions for the professional investor. Last edited by paulw; 16-09-2009 at 11:31 PM.
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