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Finance for Airspace Development

Introducing you to the right lenders to maximise your planning gain

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Funding options

£

Fund entire project

  • 1 to 36 months
  • £25,000 – No Maximum
  • Staged funding
  • Timber Frame and MMC (Modern Methods of Construction)

Choice of Funding

  • Interest only
  • Interest roll-up
  • Up to 90% of the Gross Development Value or GDV
  • Planning gain transactions our speciality

Versatile Funding

  • Residential and commercial
  • Property purchase and work
  • Legal and architect fees
  • Expert Support throughout

Talk to Rangewell – the business finance experts .

We know every property lender in the market and can help you find the funding you need for airspace developments.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

Finance for Airspace Development

When you own the freehold of a property in the UK, you legally own the bricks, mortar and the ground it stands on.

But you also own the airspace, the area above the roof. And this could provide an opportunity for development.

Airspace Development Finance is the best way to maximise the value of your freehold property.

You have a right to enjoy the lower stratum of airspace immediately above your property - and with airspace development finance you can develop flats and apartments in this airspace thus adding substantial value to your freehold

For practical reasons - and to avoid legal problems with aircraft - adding new flats or aprtments to the airspace above your freehold is usually restricted to between 500 and 1,000 feet above your roof space level. This prevents your neighbours from erecting overhanging eaves or even advertising hoardings over your home. But the possibilities don’t end there.

Looking for Airspace Development Finance?

We are the experts in financing all types of Airspace Developments - including Timber Frame as well as Modern Methods of Construction

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In big cities where building land is simply not available, this untapped airspace and air rights is now being explored for its development potential. It is believed that by making use of existing flat roofs in London alone, there would be sufficient room for around 180,000 new homes. 

The idea of airspace is already well established in other locations. In London, for example, airspace is worth an average of £176 a square foot. 

A relaxation in property development laws means that homeowners may be able to add two storeys to a detached property under permitted development rights without needing additional planning permission. 

If you have a suitable property you may be able to sell the airspace to a property developer, to build penthouses or flats - but be aware that they too will often need Development Finance. Alternatively, if you are a developer yourself, you may be able to buy the airspace above commercial buildings or existing blocks of flats and build new homes.

But there will be substantial costs involved - and that is where finding the rigth finance for Airspace Development comes in. Property of a suitable structure to sustain extra loading and with roof space suitable for development could demand between £1,000 and £2,000 per square metre in the suburbs and as much as  £7,000 at the top end of the market in Kensington and Chelsea. 

Getting the funding you need

The concept of selling airspace is new and many lenders will have little familiarity with the concept. At Rangewell, we can help you find those lenders who are able to look into the new and promising area and provide development funding.

Most airspace projects will require heavy refurbishment or development funding.

Heavy refurbishment mortgages allow experienced property developers and investors to fund both the purchase of a property needing work or with potential for extension, and the funds to carry out the work required. The work may include conversion of a single building into multiple letting units, such as self-contained flats or a home capable of major extension above the existing roofline.

With heavy refurbishment, the lender will want to see a schedule of works. This is a detailed breakdown of the work and costs involved in the project, together with projected timings. A valuer will comment on whether the intended budget is realistic and if the time scale is achievable. 

Lenders may also want to see evidence of your past projects, to ensure that you have the skills and vision to complete the work. 

Funding for Airspace Developments can be a complex area

Our team can support you from application to drawdown

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How Refurbishment Finance works

Refurbishment finance is based on the gross development value (GDV), the value of the project once completed. This is also known as the post refurbishment works value.

Loans may be available from £100k to £10m. Lenders may consider lending up to 70% of GDV, with funds released in stages. These funds may cover both the property purchase as well as refurbishment works, although funds may also be available for developers who already own a property in need of work.

Terms of up to 18 - 24 months are available, and interest payments may be rolled up in the total loan amount. 

As with all property finance, there will also be fees:

  • Arrangement fees These are charged by the lender for arranging the loan and are typically 1.5% to 2% of the loan amount.
  • Exit fees Not all lenders apply exit fees - those that do may charge a percentage of the loan amount or, sometimes, the gross development value.
  • Valuation fees Lenders will instruct a surveyor to value the property both before and post refurbishment works. The scale of these fees will depend on the size of the project.

Property investment solutions from Rangewell

Our team have all worked at lenders previously, so they know what lenders will ask for and how to structure applications for the best success. If you have a property funding need, simply call us now to get our experts working for you.

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Looking for Airspace Development Finance?

We are the experts in financing all types of Airspace Developments - including Timber Frame as well as Modern Methods of Construction

Call us

Email

Schedule

WhatsApp

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