Planning Assistance Loan
The innovative Planning Assistance Loan enables experienced property developers to buy commercial space before they have secured full planning permission for their residential conversion scheme.
What is a Planning Assistance Loan (PAL)?
This innovative product allows experienced property developers to buy commercial space before they have secured full planning permission for their residential conversion scheme.
Why is a Planning Assistance Loan important?
The market converting commercial property in residential space is growing rapidly. There are two main drivers behind this trend.
Firstly, there are estimated to be 165,000 privately-owned commercial and business premises currently empty across the UK with an additional 7,000 commercial and business premises owned by local authorities having been vacant for over 12 months.
Secondly, the introduction of the new ‘permitted development rights’ in late 2023 enabled developers to convert commercial space into residential without planning permission. Albeit with a raft of conditions.
Given that we are in a phase of ‘getting Britain building’ and creating new homes, then changing the use of empty commercial buildings to residential seems an obvious way of supporting this.
What is a Planning Assistance Loan needed for?
At Assetz Capital, we understand the need of the market to have a product where experienced property developers can buy commercial space before they have secured full planning permission for residential, PBSA, or PRS. A Planning Assistance Loan enables them to do just that, and then secure the vital planning permissions during the period of the loan.
What happens when planning permission is granted?
The PAL can be converted into a Refurbishment Loan to complete the conversion project when the appropriate planning permission is granted.
Read our press release about the launch of our PAL.
Our key lending criteria
Why not watch our short video which explains more about our Planning Assistance Loan?
We take pride in being flexible and finding a funding solution that meets your business needs. Each loan is structured and priced on its own merits. We will consider terms outside the below LTV and maximum loan guidelines when the circumstances warrant it.
| Indicative Terms | Key Features |
|---|---|
| Loan size | £500k – £5m |
| Term | 12 – 18 months. |
| Fees | From 2% |
| Loan to Vacant Possession (LTVP) | Maximum 65% (including any retained interest). |
| Rate | 9.5% p.a. |
| Repayment type | Bullet, with interest either retained or serviced. |
What our clients say about us
Aspire Homes
Assetz Capital have been great throughout, they understood our vision and supported us during the entire process. Their knowledge of the market and desire to support house-builders has made us feel valued and we look forward to continuing our relationship with them.
Paul Whitehead
Aspire Homes
Forth Homes
We found dealing with Assetz Capital a breeze. I would consider it to be very easy lending. We are looking to submit the proposals of the next development with Assetz Capital.
Peter Foxcroft
Forth Homes
Progressive Living Developments
We are delighted to work with Assetz on this project. Their way of funding makes so much sense. We are happy to deliver much-needed housing and contributing to the regeneration of the NOMA district.
David Fairclough
Progressive Living Developments
Our other property funding solutions
We provide many other property funding options. So whether you need to purchase, build, refinance or refurbish – we’ve got you covered. Browse our full product range below to see how we could help.
Commercial Mortgages
If you have an established business with equity to put into your own premises; the opportunity arises to buy the premises you are operating your business from (where it is currently rented), or you want to unlock some equity in another property, or indeed grow your property investment portfolio, a commercial mortgage could be the ideal solution.
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Development Finance
Development finance projects come in all shapes and sizes and there’s isn’t one that we haven’t seen before. From converting properties to care homes through to the new build of student accommodation. Additionally, we can also support any aspect of residential development – both traditional bricks and mortar properties and apartment blocks. Plus, we fund beyond ground up construction as we’re also expert in conversion, refurbishment and reconfiguration projects.
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Residential Refurbishment
Our residential refurbishment loans are designed to help SME property developers buy and refurbish single or multiple properties. From light renovation to heavy refurbishment. To the conversion of office blocks to residential spaces. We can find the finance you need.
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Bridging Finance
Competitive rates, speedy decision making and quick funding. Assetz Capital provides everything you need from a bridging lender. Whether you need funding quickly for property purchase, land acquisition, refurbishment or development finance exit. We can fund it all.
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Development Exit Finance
Development exit finance is a type of bridging loan (or bridging finance) for property developers used at the practical completion stage of their project. The aim being to save costs and hopefully maximise their profit. See if Assetz Capital could help you.
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