Property Development – How to Maximise Your Profit

Established property developers and letting agents, or anyone searching for a property development opportunity, need to focus on generating the highest return on investment from their projects. Now is an ideal time to start a property development project as you can make significant savings like never before, and here’s how.

1. Find Property Development Opportunities at Property Auctions

The benefits of buying property from an auction are huge. It’s possible to sweep up property below its open market value. There is also no larger marketplace of properties which can be renovated or converted for profit. There’s also no quicker way to find property development opportunities than at an auction, as the completion date fixed at 28 days from when the gavel drops.

It’s also important to carry out research before attending a property auction. Legal packs are available online prior to the auction. These packs include documentation gathered by the auction house and the seller’s solicitor. The packs include title deeds, relevant searches, planning permission, and tenant leases. There is no cost for viewing these documents, and it could save you buying a property with massive structural issues.

2. Stamp Duty Holiday Deadline

If you purchase property for £450,000, you would pay £13,500 in stamp duty charges. In contrast, you could now buy a property worth £463,500 without paying anything extra. The are no plans to extend the stamp duty holiday past the end of June. If you are searching for a property development opportunity, you will need to purchase your property before June 30th. You can check if any stamp duty is due by using this stamp duty calculator.

It’s also worth exploring a Bridging Loan, as these can be used to raise finance quickly. You can purchase property quickly and not have to wait for the mortgage lender and solicitors to complete. You can purchase the property in cash with a Bridging Loan, and guarantee that you make the savings.

3. Reduce Interest Rates

It’s always best to source finance that avoids high interest rates if possible. For those property developers that do buy with a mortgage or loan product, aim to get the house completed ASAP and sold on to fund your next project. Once you have raised finance, you can become a landlord to help offset the costs of future development projects.

Mortgages are often the best, low-interest source of funding for property development, however if you have a bad credit rating, it might not be an option. However, we can support property developers with most credit histories.

4. Seek Professional Advice

You may feel you have all the information you need for your property development project, and don’t need expert advice. Paying for professional financial advice may seem like an initial unnecessary cost. However, speaking with an independent mortgage advisor will help you find the best rates when raising finance and will give you access to most exclusive rates on the market. You are likely to save money in the long run and save time as the professionals will be doing all the work for you. Having a professional advisor supporting your project will give you peace of mind and they will offer invaluable advice which may make the process simpler and easier.

Friends Capital are independent and unbiased mortgage and loan specialists. We are experts in the field of financing property development, buy-to-let mortgages, HMO’s and funding residential renovation projects. We have access to the whole of the specialist finance market, and we also have access to exclusive deals with the leading, most established, and trusted lenders. If you would like to discuss your situation with us and discuss your property development project, you can email us at or call us on 0800 862 0811