Sales underwriting offer set to boost development in Yorkshire

Sales underwriting offer set to boost development in Yorkshire

Landmark Development Solutions (LDS) – the innovative residential underwriting concept for developers has announced that it is launching the model in Yorkshire.

The business – launched in 2017 by Landmark Group – has enjoyed a highly successful 18 months in the North West, working with a range of developers and construction companies. It enables housebuilders to get schemes out of the ground and open doors to improved funding options therefore increasing volume

Mark Hawthorn CEO of Landmark Investments Group explains: “LDS effectively de-risks entire schemes, by contracting to underwrite sales, whist the developer retains the ability to sell on the open market for full value generating higher returns.  If there are unsold units at any point in the development or at the end, we will step in to complete, ensuring the developer and their lenders a clean exit.”

Our main focus is schemes or phases of around 15-60 units, with a typical GDV of £3M-£20M.  Without absolute certainty over sales, getting a scheme out of the ground can be a leap of faith that many developers and their lenders are unwilling to take.  LDS changes the risk profile, removing these concerns, giving the lender a clear sight of exit and the confidence to fund, allowing developers to get on site and create much needed housing supply”. 

He added: “This is a completely unique concept which we strongly believe will change the way developers and lenders fund residential schemes in the future – we’ve already seen it happening in the North West”

Ben Ogunby acquisition director said: “There has always been a plan from day one to expand LDS nationally following our initial launch”.   

“Yorkshire is the natural progression for us, there is a real appetite and demand for new resi housing schemes in the region.  In advance of our expansion we’ve been monitoring the  Yorkshire market and in the last 12 months alone there have been 115 sites with housing value of almost £600,000,000* granted permissions that suit our criteria.  We will be opening discussions with these landowners and their advisors in the near future and encourage other landowners and developers to get in contact.”

“We strongly believe that LDS can have a huge impact on the number of housing starts and supply’s in Yorkshire.”

*= 2,903 units identified across 115 sites, using average value of £200,000 = £580,600,000

Landmark Group