Take your time to go through the Illustration which shows you everything about the product which includes all fees including arrangement, product, broker and valuation fees and also gives you details on any exit penalties or early repayments.

It also explains the rate that it will go to once the initial product is finished and if there is a free valuation or legal costs.

Ignore the amount specified under legal costs as unfortunately, most lenders keep this very very low and unrealistic.

Standard bridging is ideal for customers looking to secure the purchase or refinance of a residential or investment property
including:

Chain break – whilst waiting for an additional property sale
Raising funds for short term requirements
Auction purchase
Capital raising for any legal purpose
Meeting tight transaction deadlines

Light refurbishment:

Light refurbishment is used where short term finance is needed for items such as:

• Modernising properties
• Replacing kitchens and bathrooms
• Properties deemed uninhabitable/unletable by long term lenders

Heavy refurbishment:

Heavy refurbishment is where you may require short term finance for works that require building regulations or planning permission.This could help with:

• Conversion and reconfiguration of residential property
• Commercial to residential
• Completing a development that is wind and water tight
• Extension, loft conversion and basement digs

• A HMO with C4 planning use specifically relates to smaller HMOs

• The classification of C4 originates from C3 with the added benefit of permitted development.

• Permitted development allows for a change of use from C3, up to a maximum of 6 occupants, without a full planning application as long as there is no Article 4 direction in the area.

• Valued on a “vacant possession” basis by most lenders: the property is valued in its present condition with full benefit of vacant possession. The surveyor uses comparable evidence to support the valuation figure.

• Article 4 is whereby the local authority is looking to restrict the number of HMOs and restrict permitted development in a geographical area

• This may affect the valuation in the sense that if a HMO has the benefit of planning in an area then there is a value in the scarcity of the HMO

• Valuers confirm whether a property sits within an A4D area, and if so, how much proportion of the MV is in essence ‘scarcity value’

A freehold property split into self contained flats. Make sure it has the correct planning permission if it has been converted, along with building regulations.

These can be as simple as a terraced house converted into two self-contained flats or a new build on one freehold title split into multiple flats.

We have a wide range of BTL and specialist lenders which can provide options for all types of multi unit BTL mortgages.