Assetz Capital has made changes to its development finance proposition to allow both planning gain and residual undeveloped land value as valid equity contributions.
The property development finance provider said the move would reduce the cash developers must invest upfront and allow them to access greater overall leverage, as well as fund more units from day one.
This update maintains the full 72.5% loan to gross development value (LTGDV) and 87.5% loan to cost (LTC), alongside Assetz Capital’s project monitoring.
The lender said it showed its commitment to helping SME developers access capital, accelerate delivery and bring high-quality housing to market.
Andrew Fraser (pictured), chief commercial officer at Assetz Capital, said: “By recognising planning gain and the value of undeveloped residual land not being constructed as legitimate contributions, we are lowering the upfront cash burden on developers and unlocking additional leverage.
“Developers can now retain more cash for construction, accelerate delivery, and potentially fund multiple schemes concurrently, increasing housing output across the UK.”
Affordable homeownership: where brokers can make the difference
Sponsored by Halifax Intermediaries
Fraser added: “Under the updated policy, developers who have invested in securing or enhancing planning approval, as well as those holding additional undeveloped land, can count the resulting value uplift toward their equity contribution.
“All contributions must be fully evidenced, including acquisition costs, planning investment, and site valuation. Purchases at discounted prices do not qualify. All deals are expected to be fully funded, straightforward, and in saleable locations across all regions of the UK.”
In December, the firm made two appointments to its national relationship team.
