Refurbishment Finance
Refurbishment Finance
Is the property not mortgageable due to its condition? Does it need a full refurbishment before selling the property? Then we can help.
It may need decoration, a new bathroom, kitchen, suffer from damp or needs rewiring. Do you want to add an extension or convert the basement or loft? Then we have lenders for you.
Do you want to convert single units to multiple units, commercial to residential, a single let to an HMO or a new build that requires completion?
We will guide you through the various options available to you whilst you build your portfolio.
Case Study
Situation
We were approached by a new client who had agreed to purchase a terraced property. Another broker had arranged a BTL mortgage and when the valuation was received it was not mortgageable.
The electrics were dangerous, it had damp, kitchen units were missing and the bathroom suite was from the 60s.
The valuer felt there was no rental demand for a property in this condition.
Our client was stressed as he knew the potential and was in danger of losing the property.
Our Response
From our lender panel we chose one who would instruct the solicitors on day one and had a fast-track legal process.
It was a limited company purchase and there was no debenture or independent legal advice for the personal guarantee. This reduced costs to the client and speeded the legal process up.
Whilst the valuation was being done the legals were in progress and when it came back with a satisfactory existing valuation and after works, we were able to complete within a week.
We obtained an 85% bridging loan based on the purchase price and the lender’s fee was added to the loan.
Result
The refurbishment took three months and after two we applied for a remortgage to a BTL lender who would refinance within six months of ownership.
Our client arranged to meet the valuer and as it was to a high standard they received a higher valuation and rental income.
The BTL mortgage completed within four months which saved them approximately five months bridging interest.
They were able to withdraw most of the refurbishment funds as the BTL mortgage was based on the end value.
If you need more information on Refurbishment Finance contact us on 01565 654005