CrowdProperty has unveiled a new product aimed at helping developers finance projects that have not received planning permission yet.
The planning gain finance product will provide funding so a developer can secure a site and it will be converted into a development finance loan once planning permission is granted.
A developer will also have to take out an abortive planning cost insurance policy in case planning permission is refused and the project is abandoned.
The loans will be managed and arranged through the peer-to-peer lender’s specialist property team, which includes chartered town planner Victoria Lane.
“This new product will offer a new way of financing projects which have yet to receive planning permission,” she said.
“The ability to assist developers in this way is a new direction for CrowdProperty which will enhance the current offering of development finance.
“Property professionals with a proven record in achieving development proposals with the benefit of planning consent will benefit immensely from this service and CrowdProperty is happy to have discussions with prospective borrowers and developers regarding potential projects which may benefit from planning gain finance.”
Mike Bristow, chief executive of CrowdProperty, said the platform is committed to providing the “very best support for property professionals to build their businesses more quickly and profitably, driving much needed spend on labour, materials and services in the UK economy.”