Funding and Investment Partners in Stornoway

Working together in Stornoway

In Highlands & Islands, Stornoway lies about 94 miles north-west of Inverness; its central postcode district is HS1. The nearest other places we cover are Inverness (94 miles), Thurso (107 miles) and Fort William (107 miles).

Typical partnership structures for Stornoway: mixed-tenure developments, land-led schemes with a housing partner and social rent homes. Planning in Stornoway follows Scotland’s rules: National Planning Framework 4 sets national policy and the council’s Local Development Plan sets local policy.

To discuss a scheme near Stornoway, call us or send a short note about the opportunity.

What we offer in Stornoway

Advice from your own advisers

We do not give legal, tax or financial advice. Every party should take independent advice before entering into any agreement with us.

Forward funding and purchase

For build to rent and affordable homes, we discuss forward funding and forward purchase structures with institutional and registered provider partners.

Landowner co-investment

A landowner can keep an interest in their land through a joint venture rather than selling outright, with the terms set out in a written agreement.

Part of the S&K Group

Land to Homes is part of the S&K Group, a Birmingham-based construction and property group whose businesses include glazing, building supplies and property improvement.

The Scottish system, as it applies in Stornoway

Scottish land deals differ from the rest of the UK in a few ways: contracts are concluded by missives, consent in principle is called planning permission in principle, and developer contributions use Section 75 agreements. Land to Homes works within those rules around Stornoway, whether buying a suitable site directly with no onward chain, subject to survey, title and contract, or promoting it through planning with nothing to pay upfront. Planning permission is never guaranteed, so we explain the risks plainly.

In Scotland, land transactions attract Land and Buildings Transaction Tax, and lenders take a standard security registered with Registers of Scotland rather than a legal charge. Contracts are concluded through missives, and planning obligations are secured by Section 75 agreements. Scottish property law differs from English law, so partners need Scottish legal advice.

Key rules in Stornoway
National planning policy	National Planning Framework 4 (NPF4), which forms part of the statutory development plan
Land transaction tax (paid by the buyer)	Land and Buildings Transaction Tax (LBTT)
How a sale becomes binding	Land sales are concluded through missives, formal letters exchanged between solicitors that become a binding contract once concluded, followed by settlement on the date of entry and registration in the Land Register of Scotland.
Developer contributions	Section 75 planning obligations, with Section 69 agreements sometimes used for simple one-off payments

Funding and Investment Partners in Stornoway: questions

What is forward funding?

Forward funding is where an investor, often an institution, buys a site and funds the construction of homes on it, taking ownership of the completed scheme. The developer builds the homes under a development agreement. It is used in build to rent and some affordable housing schemes. The legal and tax structure needs specialist advice for each party.

What types of funding do residential developments use?

Typically a mix of senior development debt, sometimes mezzanine debt, and equity from the developer and its partners. Build to rent and affordable homes may use forward funding or forward purchase by an institution or registered provider. Landowners can also contribute land through a joint venture. The right structure depends on the scheme, and each party takes independent advice.

Do public bodies fund housing development?

Public bodies support housing delivery in each nation, for example Homes England, the government's housing and regeneration agency in England, and the Development Bank of Wales, which offers property development lending. Grant for affordable housing usually goes to councils and registered providers rather than developers. We describe these bodies for context; each has its own criteria.

How can a landowner co-invest in a development?

Instead of selling outright, a landowner can put land into a joint venture with a developer, agreeing how costs, decisions and proceeds are shared. This can suit landowners who want a longer-term involvement. It carries more risk than a sale, so independent legal, tax and financial advice is essential before agreeing any terms.

Can we discuss a partnership in Stornoway?

We are happy to talk about specific opportunities in Stornoway and elsewhere in Highlands & Islands, including Lerwick, Kirkwall and Thurso. Conversations are private and every arrangement is documented by each party’s own advisers. Nothing here is an invitation to invest.