If you are buying properties to refurb, and I think you should be so you can add value, most buy to let lenders want the property to be lettable from day 1.
So getting finance can be tricky, if not impossible, for the types of properties we want to buy.
Here’s the solution. This product gets around that by giving a short term bridge whilst you do the refurb, and then a GUARANTEED exit onto a buy to let.
And the bridge, in my experience is at a very competitive (cheap for bridge) rate.
AND the lender will consider an 80% LTV after refurb
AND there’s no interest to pay during the refurb.
AND the bridge and the by to let are bundled together in one product so there’s only one application.
How good is that?
If you’d like to discuss this with my mortgage broker please email me thepropertyteacher@gmail.com and I’ll put you in touch.
Here are details:
- Up to 75% Loan to Value for light refurbishment.
- Lender will consider works completed under Permitted Development Rights where there is no change to the footprint or structure of the property.
- Valuation will advise lender of value of property in current condition & post works inspection re post refurbishment value.
- Lender will consider up to 80% of post refurb value at Buy to Let exit stage.
- Guarantee of an exit onto a Buy to Let Mortgage at the time of application (providing there is no change in circumstances and the property meets the expected valuation following refurbishment).
- One application – The Buy to Let Mortgage product chosen will remain available whilst the Buy to Let Mortgage Offer is valid, allowing customers the security of knowing what their monthly repayments will be once the refurbishment is complete.
- No mortgage repayments required whilst works are being completed – interest is retained during initial bridge term typically maximum 6 months.
- All types of residential units considered – subject to valuation & min value of 75k.
- Fast completion with dual representation option available to ensure no legal delays.
- Retained interest- interest rolled up within initial loan advance maximising cashflow.
- Monthly interest Rates from 0.49% – 0.79% dependent on LTV with 0.75% lenders fee which can be added to the loan if required.
- Ltd Co/Partnerships/Individual applications considered.
- Minimum loan size £50k per property.
Examples & types of properties the above facility has been used in the past where traditional Buy to Let applications have run into issues are:
- Change the use of a property to or from a HMO (maximum 6 bedrooms).
- Landlords wishing to change the use of a garage to a habitable room.
- Properties needing works to meet minimum EPC rating, such as boiler replacement
- Properties purchased at auction that require light refurbishment to be acceptable for mortgage purposes.
- Landlords choosing to refurbish in order to maximise the rental yield of their property
All lending subject to Valuation, status and underwriting approval.
If you’d like to discuss this with my mortgage broker please email me thepropertyteacher@gmail.com subject Refurb Finance, and I’ll put you in touch.
Here’s to successful property investing
Peter
Peter Jones B.Sc FRICS
Chartered Surveyor, author and property investor