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Transformative Financing Solutions for Student Accommodation Development

Unlocking the potential for developers to construct premium student accommodation with promising letting prospects is our forte. As the student population burgeons, purpose-built accommodation tailored to their needs becomes increasingly vital. Paragon stands as a stalwart supporter, having financed numerous pioneering projects in this domain.

Guidance tailored to your vision

Our seasoned regional relationship directors stand ready to craft financing solutions aligned precisely with your aspirations. From inception to fruition, they offer unwavering support and invaluable counsel, ensuring your journey is smooth and successful.

Our Development Finance team boasts extensive experience across the UK, fortified by specialised directors adept at navigating the intricacies of diverse funding requirements. Connect with us today to discover the breadth of our assistance.

Empowering student accommodation development with competitive financing

By collaborating with developers nationwide, we facilitate access to flexible funding avenues, enabling the inception and realisation of high-value student accommodation projects. Strategically situated in proximity to prestigious universities and higher education institutions, these developments promise lucrative returns.

Bolstered by the resilience of the sector, we orchestrate funding solutions for projects in key university towns, provided they meet stringent criteria. A prime location, robust profit margins, and burgeoning demand for student accommodation form the cornerstones of our financing endeavours.

Partner with us to embark on a journey of unparalleled support and expertise, propelling your student accommodation developments to new heights of success. Reach out today and witness the transformative potential of our financing solutions.

Types of Development Finance

When looking for development finance it is important to identify the type of project being planned by the developer in order to access the correct funding product. Types of works can include:

ground up build development finance

Ground up builds

New builds nearly always require development finance loans. Once the project is completed, developers may use development exit finance as a more cost-effective solution, but this cannot be done before the project is watertight.

property conversion or restoration finance

Large scale restoration and property conversions

For this type of project, refurbishment finance is typically the correct type of loan to use, however if the project is larger than the norm, development finance may be a better alternative.

property refurbishment finance

Property refurbishment

A refurbishment loan, which is a type of bridging finance, is generally used for property renovations. It can be used for various improvements including, installing a new roof, general structural changes, building an extension, refurbishment, and decoration.

bridging loan property development

Bridging loan for property development

Property investors or developers may want to buy property which needs development or completion work still doing and are unable to get funding from their bank. This is a typical scenario when a bridging loan is a suitable alternative.

How is Development Finance Repaid?

Development finance loans are typically paid in one of the following three ways:

Paid in full

The total loan amount is paid in full, using the profits, when the project is complete, and the properties have been sold.

refinance with long term loan

Refinancing using a long term loan

This usually happens when the developer wants to keep the development for either personal use or for rental purposes.

development exit finance

Refinancing using a Development Exit Bridging Finance

This type of short term loan is often used to fund a new development project before the current project is sold. It can also be used to give developers a bit of breathing space to complete minor works and find buyers.

Frequently Asked Questions

It depends! The classification of student accommodation in the UK can vary based on several factors:

  • Type of accommodation: Purpose-built student accommodation (PBSA): These large, managed complexes often fall under the "sui generis" category, distinct from residential or commercial.
  • Halls of residence: Typically linked to educational institutions, they might be considered "residential institutions" or "institutions."
  • Privately owned student houses: These are usually classified as "residential" property, similar to regular houses.
  • Local planning regulations: Specific areas might have zoning restrictions that could classify student housing differently.

It can be, but like any investment, it carries risks and requires careful consideration. Here are some key points::

  • Stable, reliable demand thanks to consistent student populations.
  • Potentially high rental yields compared to traditional residential properties.
  • Professional management options are available, reducing your workload.
  • Higher purchase price compared to typical houses.
  • Susceptible to economic downturns impacting student enrollment.
  • Management fees and potential voids can affect profitability.

Yes, in most cases, stamp duty applies to purchases of student accommodation in the UK. However, the specific rates and exemptions might differ depending on:

  • Type of property: Residential-classified student houses follow standard residential stamp duty rates.
  • Purchase price: Higher thresholds and rates apply for more expensive properties.
  • Buyer type: First-time buyers may benefit from reduced rates.

Remember: It's crucial to consult with a financial advisor and property expert before making any investment decisions. They can help you understand the specific tax implications and risks associated with student accommodation in your chosen location.

Development Finance Products

Contact Us

Contact Details

pin Office Block 2, Nursery Court, Kibworth Business Park, Harborough Road, Leicester, LE8 0EX

phoneTelephone: 0116 464 5514

locationWeb: www.developmentfinance.com

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Fri: 9am-5pm

Sat: 10am-5pm

Sun: 11am-5pm


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For vacancies please email us on  [email protected]