Shawbrook have today announced that it is offering packaged finance products to clients for properties that require more refurbishment work than normally allowed by lenders with their Buy to Let and light refurb products.
Heavy refurbishment is defined by the works being completed costing more than 15% of the property value. This is likely to be extensions, loft conversions, internal reconfigurations and change of use (single dwellings to flats when planning is in place).
Customers must be experienced in refurbishment and applicants should provide evidence of a track record of completed projects (similar scale and cost) within the last 2 years detailed in the Previous Projects Schedule or supporting evidence.
Product details include:
- Interest rate charged at 0.89% per month up to
- Maximum 70% Loan to Value* based on the current Market Value not Gross Development Value (value once works are completed)
- Terms up to 18 months – no minimum interest, or minimum term
- Repayment options of – fully serviced, part serviced part retained or fully retained.
- Customers will need to have the funds to cover the cost of the works.
*Additional security is accepted in lieu of a cash deposit. Where the a 2nd charge is offered, this is limited to residential security only and up to a maximum of 65% LTV minus the existing first charge balance.
Where a commercial property is being converted to residential full detailed planning must be in place on completion and the LTV will be restricted to 65%.
If you wish to switch to a long term loan and rent the property after the works are completed the existing client discount of 0.25% will be applied. The arrangement fee on the new loan would be just 0.95% added to the loan on completion outside of the maximum LTV
They would not previously fund projects where the properties required anything more than a light refurb, but now allow property professionals to purchase and finance projects requiring more work at a competitive 0.89%pcm. The choice of repayment structures and additional cross-charging facilities also allow the possibility to borrow 100% of current value on purchase.
For assistance with this or any property finance requirements please, call us on 01603 489118 or email firstname.lastname@example.org
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