85% Refurbishment Bridging Reintroduced
After 11 long months of battling a global pandemic, we finally have some excellent news in the property finance sector for investors and developers – the return of the 85% Loan to value (LTV) bridging product with Shawbrook Bank.
You may borrow 100% of the refurbishment costs if the total LTV does not exceed 85% of the current valuation or 75% of the post works value, whichever is lower.
This product is perfect for run-down properties in need of a light refurbishment. Equally, it’s suitable for small HMO conversions and is a great way for investors to maximise their leverage. Light refurbishment is classed as any works which are non-structural and do not require any changes in planning. For example, new kitchen and bathroom, decorating or minor remedial works. After a light refurbishment, investors can significantly increase the rental income. Subsequently , this maximises the overall yield of the property.
Shawbrook can retain the interest which means you will have no monthly payments throughout the term of the loan, which is another perk of this product offering!
Get in Touch With Us Today
If this sounds like something that could work for you, please get in touch so we can run through the numbers and answer any further questions you may have.
We provide a FREE assessment on all our services. Please contact me directly or use the Get in Touch With Us Today feature at the bottom of this page.
Megan Parkin – Property Finance Adviser