01
An independent structural survey first
Before you commit. You need to know what has been built, whether it was built correctly, and whether it can be certified. This is not a cost to avoid.
Development
“I want to buy a part-built site that another developer abandoned”
Part-built sites can be funded, but lenders value them cautiously because a half-finished structure is worth less than the land plus the money spent on it. The decisive factors are a structural survey of what exists, a clear schedule of what remains, and a contractor already appointed.
An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.
Sound familiar?
- The site has an incomplete structure on it
- The previous developer stopped work, often for funding reasons
- The price reflects the difficulty rather than the value of the work done
- You have not yet had the existing works independently surveyed
The situation
Stalled sites appear in every downturn and in every case where a developer under-costed a scheme. They can be genuine opportunities, because the buyer pool is small and the seller — often a lender or an administrator — wants certainty.
They are also where inexperienced developers lose money, because the visible progress on site is not the same as usable progress. Work built without certification, to the wrong specification, or left exposed to weather can cost more to remedy than to have built from nothing.
Why the usual lenders say no
- No mainstream lender funds a partially completed building.
- Valuation is genuinely difficult, and valuers are conservative accordingly.
- If the previous scheme had building control issues, those transfer to you.
What usually works
02
Establishing the building control position
Work that was never inspected may need opening up or rebuilding. Speak to building control about the existing approvals before you buy.
03
A development facility structured around the remaining works
Funded in stages against certified progress, exactly like a fresh scheme, with the day one advance sized against a cautious valuation of the site as it stands.
04
A contractor appointed before you apply
Lenders will want to know who is finishing it and whether they have looked at the existing structure and accepted responsibility for building on it.
Roughly how the numbers look
| Day one value | Often closer to land value than to land plus works spent |
| Loan to gross development value | Usually capped around 65% to 70% |
| Contingency | Higher than on a fresh site — unknowns are the main risk |
| Survey costs | Structural, building control and QS input, all before purchase |
Budget for the possibility that some existing work has to be removed. That is the specific risk that distinguishes these schemes from ordinary development. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.
What we would need from you
- An independent structural survey of the existing works
- The planning consent and the building control history
- A schedule of works covering everything that remains
- Your contractor’s details and their view of the existing structure
- A cautious gross development value with comparable evidence
- Your own development track record
Things that catch people out
- Uncertified work is the biggest hidden cost. Building control may require it opened up or rebuilt.
- Check whether any warranty provider will cover a structure they did not inspect from the start.
- A previous developer’s unpaid contractors can sometimes register interests against the site. Your solicitor should check.
Questions we get asked
How is a part-built site valued?
Cautiously, and often closer to the underlying land value than to the land plus everything spent on it. A half-finished structure has limited value to anyone who does not intend to finish it to that exact design.
What is the main risk?
Work that was built without inspection or to the wrong specification. Remedying it can cost more than building from scratch, which is why an independent structural survey before purchase is essential rather than optional.
Can I get a building warranty on someone else’s structure?
It is more difficult, because warranty providers inspect from the foundations. Some will consider it with extensive opening up and certification. Establish this early, because your eventual buyers’ lenders will require a warranty.
The product that usually fits
Development financeEvery case is different. A specialist will confirm what actually fits yours.
Keep reading
Related situations and guides
“My build costs have overrun and the facility will not stretch”
You are part-way through and the remaining drawdowns will not finish the building.
Read the scenario“This is my first development and lenders keep asking about my track record”
You have the site and the planning, but no completed schemes to point at.
Read the scenarioBridging vs development finance: which do you need?
The real dividing line between a bridge and a development facility, how each is drawn down and priced, and which one your scheme needs.
Read the guideAll situations
Eighteen situations across bridging, development, commercial and buy-to-let.
Browse them allAmram Finance Ltd is a credit broker, not a lender. We do not lend our own money and we do not approve or issue loan offers.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Some forms of bridging finance and buy-to-let lending are not regulated by the Financial Conduct Authority.