Is it time to move into property refurbishment?Make Text Bigger
Many landlords are facing up to the Government’s onslaught of the buy to let market which has seen their profits slashed over the past three years as tax changes take effect and new legislation like the Tenant Fees Bill and the proposed Section 21 ban will add further challenges.
With some landlords selling properties to compensate for falling profits, and fewer buy to let mortgages being written as lender application processes and FCA requirements tighten up, the future isn’t looking too bright for property landlords, or so you might think.
There is now a strong, growing trend amongst landlords keen to stay ahead of the game moving into property refurbishment, property development and commercial investment. One of the most popular finance products for landlords is a bridging loan for property purchase and refurbishment. Typically up to 75% of the purchase price and 85% of the refurbishment costs.
Bridging loans are competitively priced from 0.43% pcm and becoming cheaper. If you’re an established property landlord with some equity in your portfolio, you’re good to go for bridging finance. You’ve already got a head start over most with experience in property management and usually some degree of property maintenance. so now could be a good time to change strategy from renting out property to fixing them up and selling them for profit.
Accessing bridging finance can be a minefield as there are literally hundreds of lenders out there talking a good talk. A specialist broker will save you time and money as well as make the process more straightforward, because they know who can deliver on their promises especially when price and timing are important. With a landlord’s track record in buy to let and property management you can be matched to the best products, rates and bridging lenders matching your requirements and circumstances.
If you’re considering a move into or start a new project of property refurbishment, property development or commercial property investment, your first conversation should be with an established, specialist property finance broker. We can access funding generally unavailable directly to the public and put your project and story together making sure the right lenders see it in the best possible light. We also advise you whether releasing equity from your existing portfolio is a cheaper, easier option if a change of strategy is what you want.
If you are planning any type of new property project please do not hesitate to contact us using the form below and we will be happy to help