If 2023 was a year for establishing and solidifying existing relationships, then 2024 will be about collaboration and using those relationships.
Despite inflation coming under greater control, and a downward pressure on mortgage rates, world events continue to dominate with recent events in the Red Sea adding to further supply issues, which in turn could reignite inflationary pressures.
Issues around the planning process continue unabated, and I have little faith in the current Government or any new government finding a solution. Indeed, the Opposition’s potential “use it or lose it” stance on consented sites will only add to a very confused situation.
In recent times, the major house builders have either opted for smaller density sites, if at all, and I am told one of the major four Housing Associations has decided they will only concentrate on contracted sites with no new acquisitions contemplated until 2025 - at the earliest.
If you are a lender with borrowers sitting either on consented sites looking for a sale, or very speculative sites seeking a consent, the avenues to repayment are becoming less and less by the day.
With the increase in the number of contractors failing, my sense is we will see an increase in part completed sites coming to a standstill- with all the inherent issues that will raise with lenders.
Experience will be key. And the access to the right professionals in the very complex planning arena even more so.
I have access to the following:
1. Hugely experienced property professionals specialising in the practicalities of planning.
2. Access to a specialist legal team versed in all areas of planning law and disputes.
3. Direct access to a top London Chambers, again specialising in property law, and specifically failed appeals.
4. Access to a team of very experienced professionals e.g. architects, highways specialists flood plain , landscape, heritage environmental etc who can review and support any application.
5. A polling company that focuses on researching local views on more significant
contentious applications. This is an area often overlooked but can highlight crucial local support ahead of the submission of any application.
6. In conjuction with Thomas Mae Land and New Homes, an audit of the current marketing strategy can be undertaken
7. And of course, myself and my colleagues at BBA Finance can work with borrowers to find alternative funding solutions, with access to a variety of bespoke lenders as well as mainstream players.
In addition to the above, and in conjunction with my own experience viewing developments from a lenders perspective, I am also working with a number of contractors/ site managers who can review and assess any ongoing site.
A combination of any of the above can be a significant benefit to any lender as part of their asset management strategy.
There are never and magic solutions as far as the planning process is concerned but with the right assessment, a lender has a significantly better opportunity to assess likely outcomes and react accordingly earlier in the life of a loan. This will not necessarily completely resolve a situation but could significantly reduce any potential loss.
Clearly discretion is assured.and there are clearly costs involved to improve you position re realising more money for an asset rather than accepting large losses .
Please contact me directly if for more information, or for a general discussion around any problematic sites you may have.
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