Welsh rules that affect a scheme
Planning in Wales follows Planning Policy Wales and Welsh technical advice notes, and building regulations are set separately from England. Several Welsh requirements have a direct effect on development budgets and timetables:
- New homes in Wales generally need automatic fire suppression, such as sprinklers
- New developments with a construction area of 100 square metres or more need sustainable drainage approval from the local SuDS approving body before work starts
- In some river catchments protected for conservation, rules on phosphate levels have restricted new housing unless the scheme can show it will not add to the problem
- Energy efficiency standards in Welsh building regulations differ from those in England
Lenders and their monitoring surveyors will check that the budget and programme allow for these. Raising them early avoids surprises at credit committee.
Choosing a lender for a Welsh scheme
Our panel includes lenders that cover England and Wales, lenders that cover Great Britain or the whole UK, and a lender that focuses on Wales. One Welsh-focused lender accepts speculative schemes with no pre-sales and can fund up to all of the build costs on residential schemes, which can suit local developers. Banks and larger specialist lenders typically suit experienced developers on bigger schemes.
Rural sites, small towns with fewer comparable sales, or unusual construction can narrow the choice, while larger schemes near Cardiff, Swansea, Newport and other main towns usually have more options.
How the facility works
Development lenders typically advance part of the land cost on day one and release the build costs in stages, after a monitoring surveyor confirms the work is done. The loan is limited by a percentage of the gross development value and of total costs, so most schemes need some of your own money in. Interest is usually rolled up and repaid from sales or a refinance.
Land Transaction Tax applies to the site purchase and needs to be in your appraisal. We compare lenders on leverage, cost and appetite for your scheme, then approach those that fit with a clear case. Instant Quotes gives indicative figures as a starting point, and final terms depend on each lender's valuation, monitoring surveyor and checks.
