Independent financial advice - building on Brownfield sites
Take independent financial advice about acquiring Brownfield sites for development
Why Brownfield?
We need to look at new ways of conserving the greenbelt as the demand for affordable social housing increases rapidly. One option is using Brownfield sites for housing developments. Before taking independent financial advice on purchasing a Brownfield site, you should read on.
Lenders may not be keen
You will need to take independent financial advice before investing in a Brownfield site because some lenders are reluctant to provide funding. The term Brownfield Site refers to land 'that is or was occupied by a permanent structure, which has become vacant, underused or derelict and has the potential for redevelopment'. It could be that a Brownfield site is situated in an industrial area with no suitable existing infrastructure, or that the site has previously been used by industry and is at risk of having been contaminated.
Do your research
If the site has the facilities that would make it suitable for housing development, the next step is to get Planning Permission. One of the conditions of Planning Permission will be a soil investigation survey to find out whether the land has indeed previously been contaminated. The result of this survey will give you the cost implications of making the site safe, and you can discuss this when getting independent financial advice. A soil investigation will identify potential environment risks and associated liabilities.
Flood risk
Many sites defined as Brownfield exist in low risk flood areas. Climate change means that what is currently a low-risk area may not remain so, and the risk could be considerably higher in the not-so-distant future. The local authority or the Environment Agency should be able to help you with risk assessment prior to taking independent financial advice.
The Environment Agency
The Environment Agency encourages use of Brownfield sites as a way of bringing more land into sustainable use: 'Concentrating development on Brownfield sites can help to make the best use of existing services such as transport and waste management. It can encourage more sustainable lifestyles by providing an opportunity to recycle land, clean up contaminated sites, and assist environmental, social and economic regeneration. It also reduces pressure to build on Greenfield land and helps protect the countryside'. Taking independent financial advice with a view to developing on Brownfield sites could mean protecting the environment for future generations.
Alternatives to housing
You may want to take independent financial advice on acquiring a Brownfield site for something other than housing development. Land is always needed for a wide range of industrial and commercial purposes, so if your business is factory or warehouse based, consider Brownfield.
You can have a brighter financial future. If you would like independent financial advice about bridging loans call our experienced advisers today on 0870 803 1995 or e-mail mike.robertson@mraltd.com
