No Cost to Landowners
A substantial benefit to landowners is that Welbeck Strategic Land works in partnership with landowners and funds all the costs of taking significant potential development sites through the planning process, to test their suitability for housing and to help meet the UK’s growing need for more new homes.
This is done in line with local authority and national planning policies and guidelines.
Welbeck Strategic Land is happy to consider working alongside landowners’ existing architects and planning consultants who may have already been instructed, taking on future responsibility for their costs where appropriate.
Welbeck Strategic Land recognises that offering a full cost underwrite is important, since planning is an expensive business. Even small schemes may need at-risk investment running into hundreds of thousands of pounds, with no guarantee of success. Large schemes today can incur costs of well over £1m – and even more if an adverse decision has to be taken to judicial review or appeal at government level. Where Welbeck believes that a project is likely to succeed, if handled professionally and sympathetically, and having due regard to sustainability and reasonable local community concerns, then it meets all planning costs.
Therefore, there is no cost risk for the landowner. Only if the scheme succeeds is Welbeck remunerated, from the sale proceeds.
Highest Value- Shortest Time
Welbeck Strategic Land’s approach also maximises values for landowners.
Landowners who take the conventional approach and option their sites to individual housebuilders, giving the housebuilders the right to buy on what is usually the developer’s own timing and assessment of value, are then largely if not wholly dependent on the housebuilder. From that point on, the interests of landowner and housebuilder are not necessarily aligned. It may be in the housebuilder’s own interest – but not the landowner’s – to delay the process, by way of landbanking, or to reduce the price eventually payable to the landowner, by renegotiation.
The ‘Welbeck’ approach is fundamentally different, and remains in line with the owner’s best interests throughout. It means the landowner receives highest value, in the shortest time.
As an example, Welbeck Strategic Land recently used its finance and expertise to obtain a planning consent for a site that looked particularly challenging in planning terms. Six housebuilders then bid for the site. There was a near-100% difference between the lowest offer and the highest, with each offer representing the bidder’s best view of what the land would be worth to them. Had the owners aligned themselves from the start with the housebuilder who offered what transpired to be the lowest bid, they would have received little more than half of what eventually proved to be the true value of the land.