“Lending for Refurbishment costs….a great addition to your toolkit!”
Despite the impact of Covid-19 on our daily lives, the property lending market remains strong and open for business. Products that were temporarily suspended or removed during the first lockdown are being reintroduced at a time when opportunities in the market are driving our investors to strengthen their portfolios.
Essential trades assisting with refurbishments and developments are, in the most part, continuing to offer their services and having the right team around you can make all the difference in delivering the project on time and on budget. Having the right funding in place is just as important and Lenders are keen to keep up with demand and ensure that landlords have the finance products in their toolkit, as well as the hammer and nails.
One such product that has recently been reinstated is aimed at allowing you to borrow up to 85% LTV on residential properties when lending for refurbishment costs. The unregulated short-term product works by lending 75% of the lower of the day one purchase price or value and up to 100% of the refurbishment costs on a single drawdown on completion. The total loan cannot exceed 85% of the day one purchase price/value or 75% of the post works value (whichever is lower).
On a light refurbishment project, where you are getting the property ready for sale or rental, having the funds readily available on completion can be essential in completing the works quickly and generating income. If you are retaining the property for rental, you may also benefit from any uplift in value when refinancing onto longer term finance.
To discuss the finance for your next project, give us a call on 0115 984 9800 or email property@sterlingcommercialfinance.co.uk
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