New Build Property - Help Please

[welshdeveloper]

Hi. I'm a new member and this is my first post on here, any help will be much appreciated.

I currently have 2 rental properties that I've bought and completely renovated both of them myself with help where needed, both properties have tenants but with the new tax laws coming into place the rental market is looking less and less appetising for landlords. So I was considering putting a stop to buying anymore btl properties for now and move onto building new properties.

Could anyone possibly help me with where to start with new builds?

Mainly on the subject of how financing new builds works?

And also the whole planning permissions around new builds?

If I had the finances and planning in place the physical building of the properties I feel confident enough in myself and plenty of good friends/contacts in many different trades and backgrounds to help me build the properties.

Any help and advice/tips would be greatly appreciated.

Thanks

 

[The Byre]

It's remarkably easy. You find a builder and you ask him to build a bit (e.g. foundations) and you pay him for that. Then he does the walls and you pay him for that. And so on!

 

[Gecko001]

Do not forget to buy the site and get the house designed first. It helps. Also getting planning permission and building control approval, which will usually be part of the design process.

 

[Swisaw]

Very strange!!! on one hand you seem to be expert in perperties. You have bought, renovated and rented two property and you know about rental market. On the other hand regarding building new properties, you seem as you don't have any clue about properties.

 

[billmccallum1957]

Much depends on how much capital you have available, some principal lenders will fund 100%, but that's unlikely for a new entrant into the sector.

Before you make an approach to a lender, have your maths worked out first.

Total Cost and Total Completed Value

Make sure you build in a contingency fund of at least 10% (I would go for 20%) and don't over-estimate the completed value, look to a conservative approach, if you over estimate costs and under estimate value and still show a healthy return, you will be on solid ground.

Some Principal Lenders: (none that I have used, so not a recommendation).

https://www.regentsmead.com/property-development-finance/inexperienced-developers

http://www.greenfieldcapital.co.uk/

http://www.goldcrestfinance.com/property-finance/

 

[Gordon - Commercial Finance]

Development finance usually a good option for something like this - as Bill mentions above some will do 100% but more likely you'll be expected to put some of your own cash at risk as well.
Depending on what your equity situation is like on the BTLs you already have you might find you can raise some capital there which will be paid for by your tenants. Then you're looking at a couple of quite different product types though so it would probably be worth speaking to someone.