Identifying overlooked opportunities for developers in the North
Across the UK, competition is fierce for good sites which is pushing up land prices; when combined with increasing build and supply costs, it results in diminishing returns for developers and housebuilders. We see insurance as a way of property owners, developers and investors realising new opportunities.
During initial feasibility on a site or new project, there will be sites that are immediately off-putting because they are ‘tricky’.
Perhaps there is a restriction on the legal title as to how the property or site is used, a limit to the number of houses you can build on a plot, an eye-watering rights of light budget or access and rights of way rendering a potential scheme or investment unprofitable unless these ‘risks’ are dealt with?
Is there a restrictive covenant imposing a maximum height restriction on your build? When it comes to design and layout of a development, restricting the height may result in compromised ceiling heights if you have to shoehorn in additional floors to deliver a profitable scheme. You can start to see how these things affect other professionals such as architects in the design process and your planning consultant when advising as to what scheme may be suitable for submission.
These types of issues are often insurable, enabling you to build beyond the height restriction specified in a covenant, or put six houses on a site where a covenant says you can only build one. A policy can be a powerful tool to realising new development opportunities and in turn potential profitability.
The exciting part of all this is that Legal Indemnity insurance can be a problem-solving and time-saving tool for you as a developer, lender, investor or a real estate lawyer.
We provide insurance expertise to enable you to tackle distressed sites, revive a deal, speed up real estate transactions and attract investors.
Supporting the wider real estate community is important to us, which is why we are raising awareness of what we do. Sharing insights and knowledge that shape the built environment is valuable as each of us is an integral piece of the puzzle.
Our newly established Yorkshire-based team is here to support development and investment across the North, and we look forward to providing our expertise on Place Insight over the next year.