Unlocking Biodiversity Net Gain Habitat Creation
Under Biodiversity Net Gain (BNG) rules, most developments in England must now show a biodiversity gain of at least 10%. Many housebuilders can't meet that target within the site boundary, and without another route, schemes stall and the new homes the country needs are delayed. As a result, demand for off-site biodiversity units is growing quickly, and habitat banks are stepping in to meet it. By creating or enhancing habitats such as wetland, woodland and wildflower meadow, they generate the BNG units developers need to satisfy their planning obligations.
Setting up a habitat bank takes significant upfront investment, and income from unit sales can arrive unevenly over several years. That's where the right BNG finance makes the difference. As an independent commercial finance broker, Knights Row works with specialist lenders offering natural capital finance, with underwriting shaped around the timing of BNG unit sales rather than standard lending criteria that don't fit.
Whether you're a landowner, farmer or estate planning a habitat bank, or a developer looking for off-site solutions, we can help you find the right funding to take part in this growing market while helping unlock the housing England needs. Speak to our team to explore your BNG funding options.
Ready to unlock your full potential with our Nature Capital Funding? Get in touch with us now!
Key Criteria For Our Natural Capital Proposition
Here is an outline of our Natural Capital lending criteria
Security Location
Open only to England. Statutory Biodiversity Net Gain requirements limit our eligible security strictly to English sites (general BNG eligibility and requirements apply).
Borrower Types
Open to Limited Companies, LLPs, Sole Traders and Partnerships.
Scheme Eligibility
All of our BNG lending must meet Growth Guarantee Scheme (GGS) eligibility criteria, which we will assess upon application.
Experience
Principals must demonstrate relevant experience in land management or environmental projects. No minimum trading history required.
Maximum LTV
Up to 70% of the original security value, subject to credit quality and assessment of your application.
Loan Size
£100,000-£35,000,000
Loan Structure
The loan is available for a term of 1 to 6 years and requires both ongoing interest payments and capital repayments structured as follows; Interest payable either monthly or quarterly at a variable interest rate, quarterly capital repayments of 25% of the gross income from any BNG unit sales in that quarter, and, any outstanding balance must be repaid in full at the end of the term.
Serviceability
Assessed on historical performance or 5-year cash flow projections supported by a robust business plan and sales pipeline.
Why Choose Knights Row?
When it comes to property development finance, working with a reliable finance partner is integral. At Knights Row, we are dedicated to finding you the perfect development finance lender to help you make the most out of your project.
With years of experience in the world of finance, our team of professionals is well-versed in the intricacies of property development. With our insights and guidance, you can effectively navigate the complexities of finance and find the best source of funding for your project.
As one of the leading development finance brokers in Leicester, we realise that every commercial development project is unique. That’s why our tailored solutions are customised to align with your specific needs, allowing you to focus on delivering the best results.
Offering you exclusive access to our vast network of lenders and financiers, we will help you find financing options that may not be readily available in the open market.
At Knights Row, we believe in absolute transparency and integrity in all aspects of our professional conduct. That’s why our team of finance experts are always available to answer any questions or queries you may have.
What’s more, we are authorised and regulated by the Financial Conduct Authority (FCA), so you can rest assured that your project is in safe hands.
To learn about our development finance services, get in touch with us now!