Buy a vacant BTL and have up to 6 months to refurbish it using final rental figure for affordability

Buy a vacant BTL and have up to 6 months to refurbish it using final rental figure for affordability

14:13 PM, 17th January 2024, About 3 months ago

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A brand new product was launched on the 17th of January for landlords who want to carry out light refurbishments. Light refurb means new bathrooms, kitchens, and non-structural redecorations.

These new products from Suffolk Building Society use the estimated rental income after the work has been carried out, rather than the pre-works possible rent. this potentially lets landlords borrow more. Landlords will have up to six months to complete the renovations before the property needs to be advertised to let.

To qualify, the following needs to be evidenced:

* sufficient savings to cover the first six months of mortgage repayments (while no tenant is in place)
* plans/costings for the intended work
* the capital to complete the refurbishments (if this is not being financed by the mortgage).
* all of these products are based on the purchase price, and not an enhanced value after works, although the rent calculation is based on end rent value after works, helping the borrower by enabling higher loan amount

Product options include:

2 year discounted rate with an initial / current pay rate at 5.89%
£199 lenders application fee
flat fee £999 lenders completion fee
maximum LTV – based on purchase price 80%LTV

2 year fixed rate at 6.14%
£199 lenders application fee
flat fee £999 lenders completion fee
maximum LTV – based on purchase price 80%LTV

5 year fixed rate at 5.79%
£199 lenders application fee
flat fee £999 lenders completion fee
maximum LTV – based on purchase price 80%LTV

Other criteria includes:

* Max three let properties in the BTL portfolio
* Can consider non-owner occupiers.
* They can lend on regulated BTLs where family members are residing.
* No maximum age.
* First time buyer BTL accepted.
* Every case manually underwritten.
* Overpayments: 50% ERC-free on all products.
* Will also consider annexes, flats above good quality commercial.
* Loans up to £1m, and can be referred if over.

For assistance on this or any other type of property finance please use the form below and we will be happy to help

Contact Howard Reuben

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