Semi exclusive Property Refurbishment and long term mortgage
Semi exclusive Property Refurbishment Product
In very simple terms, it’s a long term loan commitment from day 1 allowing the customer to finance the improvement of an unregulated residential or commercial property that needs some level of light refurbishment, and upon completion of the works (and tenant in place if an investment case) the loan reverts to a standard mortgage.
Key Product Points:
- Customer to demonstrate experience in sector – 2 commercial properties owned for 2 years / 4 residential properties owned for 2 years.
- Up to 12 months to refurb.
- Up to 70% of refurb costs in addition to 70% of lower of purchase price or value
- Interest can be rolled-up if the projected end position remains within 70% of GDV and lender standard product debt service requirements are met at the end.
- Significant cost benefits in avoiding a second set of legal and valuation fees, and Lenders Arrangement Fee compared to a bridge and then being required to refinance to another lender.