Are you looking to refurbish a property and want a loan that covers 100% of the works costs? Continue reading to see how we could help you. Market leading bridging lenders now offer competitively low rates whilst also funding 100% of the works, allowing you to maximise the value of your property. These loans tend to be classed as heavy refurbishment loans that fall short of development finance criteria. For property investors looking for funding on light refurbishment projects read our post on Shawbrook’s marketing leading product .
Heavy Refurb and Conversion Works
Examples of works that can be funded through these products include those involving structural changes, residential or commercial conversions, internal refurbishment, or work that may require planning permission and/or building regulation approval such as extensions and loft conversions.
Conversion of a Commercial unit into 3 self-contained flats under permitted development.
Financial Details Purchase
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To summarise, you will need a 25% deposit on day 1 along with the stamp duty fees, legal costs and the initial funds needed to begin the works. Once the initial works are complete, the lender allows you to drawdown on the next stage of funding and this is repeated until all works are complete.
This shows that including the interest roll up, the lender is providing an overall loan of 82% LTV. With an initial investment of £100,000 and overall profit on costs of £148,832, it shows that this strategy provides a fantastic return on investment.
To find out if we can help with your project, please contact me for a free, no obligation personalised quote.
Consultant – Advocate Finance Ltd
Tel: 01206 544333
Professional landlords only. Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage.