Let’s talk about Birmingham…
Now, I know that conversations rarely start well with when someone says ‘lets talk’ but rather like today’s subject, I want to move away from the archetype.

Birmingham once from a stigma of undesirability: dirty, industrial, physically scarred by WW2, the infamous pasta styled road junction and in more recent years, thanks to one academic paper, known for having a regional accent that saw locals perceived as more intelligent when they didn’t speak! I think it is fair to say that Brummies, like my grandfather, took this all rather phlegmatically and stoically strode on with an innate conviction of their own worth.

And it seems that they are having the last laugh, with Birmingham now ranked in the top 50 cities worldwide for its quality of living (Mercer: https://mobilityexchange.mercer.com/Insights/quality-of-living-rankings)

On a practical level, the ever continuing need for houses within the UK, and the desire to reclaim brownfield sites, has spurred on a number of urban regeneration plans.  Being no exception, Birmingham City Council has published the ‘Big City Plan’ an ambitious 20-year visionary framework that seeks to embrace this change. Regardless of my familial bias, working in development finance for BLG, I can say that Birmingham really does have a lot to offer by way of infrastructure and is looking to improve further with extension of the HS2 and existing tram networks. The iconic Bullring provides a plethora of shopping options, but you are by no means limited to this area. On my personal to-do list (and this is unabashedly shoe focussed) is an appointment at the Rachel Simpson showroom, which slightly further afield. Overall, Birmingham overs the same amenities and distractions that you would expect of any major city.

When pondering this blog, my grandfather’s saying ‘not an architectural gem but functional’ sprang to mind. He had a habit of saying this, along with ‘better to be underestimated’. I can’t help but feel that even as he moved south for my grandmother and lost his accent, he still channelled those Brummie roots. I also think he might have used that first phrase about my grandmother when he wanted to be provoking!

Blog by Alexandra Phillips, Credit Operations Manager for BLG. March 2019

Safeguarding our environment is a major concern for millions of people around the globe; in fact, many people are trying to do their bit for the planet, however big or small it may be.

From 2040, the UK government has said the sale of all petrol and diesel fuelled cars will be banned – with strong calls for that date to be brought forward by a decade. But the UK has already made great strides forward in becoming a more energy-efficient place to live with a crackdown on heavy pollution vehicles, charging shoppers for single-use carrier bags and phasing out incandescent light bulbs in favour of energy-saving ones.

There are now plans to reward people who return their plastic bottles in a bid to tackle the alarming amount of plastic that is clogging up our oceans.

Professional property developers and self-homebuilders are also doing their bit for the environment with more looking at incorporating new technology into their designs to lower energy consumption and costs. From installing extra thick loft insulation or triple glazing to reduce heat loss or taking advantages of a south facing roof by using solar panels, there are numerous ways of benefiting from an energy-efficient property through effective property development finance.

Given the continuing housing shortage in the UK, there will always be a large demand for modern-day properties with rising awareness of the benefits of eco-homes. When property developers truly plan for the future, building with environmentally friendly materials, making sure their buildings are energy efficient and reducing consumers’ energy costs in the long run – everyone reaps the rewards.

Although the “Zero carbon policy” was scrapped by the Government in 2017, the bigger picture is that many housebuilders have adopted the eco-home ethos with the aim of being carbon neutral.  Recently, London joined 18 international cities, committing that, by 2030, all new buildings will be rated net zero carbon.

Developing environmentally friendly housing is greatly assisted by huge advances in technology which can ultimately make a property self-sufficient. Today homes are being built that can harvest rainwater, filter and recycle waste water, clean and pump used air (extracting and recycling heat as they do so), and utilise anti-heat loss window glazing. There are also intelligent systems for smart lighting and heating, monitors and meters that provide the homeowner more control of the resources they need, when they need them, ultimately minimising wastage.

Some systems have been designed to create energy, not only to power the individual property but also to sell any excess back to the power firms.

If you are looking for a professional development finance lender, BLG Development Finance (Business Lending Group) can help you finance your eco-friendly development sites and projects. With a range of funding available for residential developments, give us a call today on 0845 465 6500 and let us help you turn your housing development dreams into reality.

The only way is up – roof top development

Dyan Letts gives an insight into developing into the roof tops

You own the freehold of a block of flats.  What could be easier than to build another floor on top and develop the roof space? Easy right?  You can park plant and store materials in the nice big communal car park, so what’s the problem?  Why are the legal fees quoted by my lender so high and why are they making it so difficult by raising so many endless issues?

Roof top developments – common questions

These are some of the common questions I receive surrounding roof top developments.  In my experience, they can be very successful, but the key really is getting the right legal advice from day one and keeping existing leaseholders happy.   Some of the best roof top developments I have seen are where the landlord/developer has fully engaged with the leaseholders from the outset.  I know developers that have provided an upgrade to communal areas by way of compensation for the likely disruption caused by the rooftop works; this can be at a relatively minor cost to the developer but is very well received by the residents. Remember, disgruntled leaseholders can be difficult to manage and are more likely to be obstructive.  As an apartment dweller myself, I know from experience it only takes one unhappy resident to disrupt an entire block.

The most common issue that I have seen is for developer/landlord clients (and sometimes rather scarily their advisers) to be completely unaware of the rights that leaseholders have under the provisions of the Landlord and Tenant Act (1987). This Act is an important piece of legislation and has far-reaching consequences.  Failure to comply is a criminal offence.  In particular, care needs to be given as to whether the development of the rooftop constitutes a disposal of the freehold for the purposes of section 5 of the Act.  If it does, this requires the service of notices on individual qualifying leaseholders within prescribed time limits. This is a fairly niche part of property law and I would strongly urge clients considering a roof top development to get appropriate advice. Now the penny should be starting to drop as to why the lenders’ legal fees seem high.

First things first – good advice if you are considering developing upwards

As a basic starting point, existing leases should also be checked to ensure that the airspace/roof space has not been granted to existing leaseholders either intentionally or by way of error.  If either is the case, then the roof top development cannot proceed.

Ideally, existing leases should also contain the relevant reservations, including the express right for the landlord to develop. Attempting to rely on a reservation within the lease allowing works of repair is unlikely to succeed.   Consider, for instance, a situation whereby the whole building needs strengthening in order to take the weight of the additional floor.  Existing leaseholders could face months of disruption and mess. It only takes one knowledgeable owner to galvanise the others into action. The Landlord does not want to inadvertently breach the lease by disturbing the leaseholder’s rights to quiet enjoyment.  However, it is not all doom and gloom and in the absence of the relevant reservations, we have managed to cover-off these points by way of title insurance.

Particular construction issues related to roof top developments

On top of all this, other standard construction issues need to be considered with particular attention given to rights to light, party wall, oversailing agreements for cranes, negotiating with service providers and removal of plant/aerials currently on the roof top. That car park you wanted to use is likely to be for the exclusive use of residents and their visitors, so you need to bear this in mind for storage and access.

In summary…

The list is not exhaustive; nor is it intended to be.  I believe we are going to see an increase in roof top developments and the takeaway from this brief summary is very simple: please get appropriate legal advice early on and engage with the existing occupiers.

Dyan Letts is BLG’s Credit Operations Director and a great support to BLG’s housebuilder clients.

​Renowned American writer Garrison Keillor once described Scotland as “the most beautiful country in the world,” while Winston S. Churchill acknowledged the Scots’ significant contributions to mankind. Today, Scotland stands as a vibrant land with cities like Glasgow, known for its bustling energy and top-notch curry, and Edinburgh, a tourist’s dream, and a thriving financial hub. The re-emergence of Dundee, marked by the V&A Museum of Design, positions it as an international design centre, making it an attractive destination for investment. Despite challenges, Aberdeen remains resilient, sustaining its fishing, farming, and tourism industries.

Population Growth

Scotland has experienced remarkable population growth, welcoming over 300,000 new residents in the last two decades. The allure of a high-quality life continues to draw people to the region, presenting opportunities for further expansion.

Impact of Political Uncertainty

Undoubtedly, political uncertainties have affected investment in Scotland. To address this, newly elected administrations must exhibit vision and true leadership by actively engaging with the private sector. The recent local elections have set the stage for coalitions to showcase real leadership, ambition, and vision. With many Local Authorities lacking overall control, coalition-building becomes crucial, with potential partnerships between the SNP, Labour, and the rising conservatives.

City Deals

An analysis of “City Deals” in metropolitan Manchester and Glasgow reveals a stark contrast in the utilisation of government funding. While Manchester successfully injected almost £1 billion into its local economy, Glasgow, with £1.13 billion in funding, has generated only £10 million. This calls for a thorough review of proposals in Glasgow, urging the involvement of the private sector to foster sustainable growth that can transform the region.

BLG Development Finance

For those seeking to contribute to Scotland’s transformative growth, BLG offers property development finance solutions. Their expertise and commitment to fostering sustainable development align with the vision for Scotland’s future. To explore opportunities for investment and partnership, consider connecting with BLG development finance.

Just as nothing is worn under a Scotsman’s kilt, the region’s potential remains intact. However, it requires steadfast leadership, ambition, and vision to ensure sustained growth. As Scotland navigates political uncertainties and explores avenues for development, collaboration with entities like BLG development finance becomes pivotal in realising the full potential of this beautiful land.

I spend my life looking at risk…

I spend my life looking at risk… Can we build a development scheme within budget? Will the houses sell? Are we overexposed in that region? Are there any foreseeable issues with the site? ‘What ifs’ upon ‘what ifs’ of being a development funder. At times, this can bring about a fairly negative mindset which can be a bit depressing.
It was good, therefore, to get away for a few days cycling in the Alps this summer with my son. But risk appraisal was never far from my mind; I thought of this whilst tearing down a hill at the better part of 60 kph on two strips of rubber tube, each barely thicker than my thumb!

I am not, and never have been, comparable to Chris Froome!

What I really thought was “there is no way I would condone this level of risk taking in my professional life”. How could I support a rank amateur riding a race quality super-lite carbon bike at speeds close to that of a pro-Tour de France cyclist? Those that know me will attest I am not, and never have been, comparable to Chris Froome!

Some risks need to be taken

However, my point is that we all have to live a little. Some risks need to be taken, not recklessly or without due care, but you can’t live in an over-protected bubble.
And that’s a point professionally as well, we need to build new houses, lots of them, particularly affordable new homes. Not every site or scheme is perfect, most have blemishes and challenges to one degree or another.

Hats off to the risk takers!

So, hats off to the risk takers – those professional house builders who take a risk, stake their money and time to build the new home we desperately need. I know they do it for profit, it’s not pure altruism, but it is time that we championed the risk takers a bit more. We need to support the risk takers and I shall try to do so!
Stuart Parfitt is Managing Director of BLG Development Finance and can occasionally be found tearing down mountains at great speed.

What a fabulous evening. BLG would like to say a BIG thank you to all the property developers, housebuilders, intermediaries, professional partners and our very own staff who attended our Summer VIP Party at Mercedes Benz World in Weybridge.  Once we all fought our way through the traffic to a well-deserved drinks reception, it was great to spend time getting to know some of the property industry’s finest.

And then it all became a little more competitive…

After the bubbles were quaffed and the canapes enjoyed, it was time for Peter Wade and Stuart Parfitt’s welcome address, during which they announced the ‘fun’ element of the evening….  Unlimited access to the Mercedes Benz Driving Experience Simulators.  With a leaderboard running and prizes awarded to the 3 fastest lap drivers, the competition soon heated up with some amazing lap times.

Be part of a winning team…

We were delighted to award our podium winners with the obligatory bottle of champagne at the end of the event.  We’re looking forward to working with our business partners throughout the summer and beyond, funding even more developments and meeting new property developers who we hope will become our VIP partners of the future.