Refurbishment Finance
Funded works for existing properties
Contents
Refurbishment
Finance
• Refurbishment Finance
• Use case 1: Renovation
• Use case 2: Conversion into multiple
occupancies
• Product Information
• Further information
Refurbishment Finance
LendInvest Refurbishment Finance is designed for property professionals looking to
refurbish or improve existing properties.
Key features
Versatile loans
• Loan to GDV up to 70%
Refurbishment Finance can be used for a wide range of projects and property types
including; extensions, conversions and works covered under permitted development
rights.
Fund all works
With loans calculated on GDV and funds released in stages throughout the project,
your client can fund up to 70% of the gross development value.
• Loans from £100k to £8m
• Terms up to 18 months
• Rolled interest
• No early redemption fees
Improve cash flow
With no interest to pay until the end of the loan term, refurbishment finance allows
your customers to maximise their leverage.
Use case 1: Renovation of existing
property
For property professionals who are looking to carry out renovation works, but don’t
wish to fund the works upfront, Refurbishment Finance allows investors to cover both
purchase and improvement costs. Find out how Mark funded the purchase and works
of his latest BTL investment.
Client: Professional landlord
Mark is a professional landlord with a portfolio of 10 properties across Edinburgh. He
regularly purchases properties in need of work before renovating and refinancing
onto BTL finance.
Scenario
Mark has the opportunity to purchase a run-down detached property in suburban
Edinburgh. With most of his capital tied up in an ongoing project, Mark is looking to
maximise his leverage so he can take the opportunity whilst it lasts.
Solution
Gross development
value
£360,000
Purchase Price
£190,000
Day 1 Loan
£133,000
Build Cost
£40,000
Total loan amount
£1213,000
Day 1 LTV
70%
Loan to GDV
60%
Interest rate
0.92%
Profit on costs
22.17%
Use case 2: Conversion of large
single unit into multiple dwellings
Developers looking to convert an existing property into multiple homes can fund
purchase and works up to 70% loan to GDV. Find out how Karen funded the
conversion of an old London townhouse.
Solution
Gross development
value
£1,500,000
Purchase Price
£750,000
Client: Professional investor
Day 1 Loan
£525,000
Karen is a property investor, with experience of adding value to residential properties
and selling them on.
Build Cost
£325,000
Total loan amount
£1,010,000
Day 1 LTV
70%
Loan to GDV
67%
Interest rate
1.10%
Profit on costs
19.50%
Scenario
Karen requires funding to purchase and transform a North London townhouse into
four self-contained luxury apartments.
Use case 3: Office to residential
conversion
For developers who are looking to transform office buildings into residential units
under permitted development rights, Refurbishment Finance covers the cost of
works with less monitoring required than traditional development finance. Find out
how Ali kickstarted the development of 12 new apartments.
Client: Professional developer
Ali is an experienced developer with prior experience on a range of projects including
office conversions. His projects have covered a number of locations across the
midlands and northern England, focusing on university towns such as Birmingham and
Leeds.
Scenario
After purchasing a former print works in central Birmingham and gaining planning to
build 12 self contained flats, Ali is looking to move from his existing facility on to a loan
that covers the cost of works.
Solution
Gross development
value
£3,000,000
Purchase Price
£1,200,000
Day 1 Loan
£840,000
Build Cost
£600,000
Total loan amount
£1,660,000
Day 1 LTV
70%
Loan to GDV
55.33%
Interest rate
0.92%
Profit on costs
46.11%
Product information
Criteria
DESCRIPTION
Max loan size
£2,000,000
Min loan size
£100,000
Max LTGDV
70%
Max LTV (day 1)
70%
Min refurb cost
15% of day 1 MV - Not less than £25k
Max refurb cost
Applicant experience
Demonstrate experience of
similar projects.
Applicant
UK residents and UK
companies.
Property
Residential
Charge
1st charge
Tenure
Freehold, leasehold with more
than 60 years remaining.
Refurbishment
Heavy refurbishment, including
structural, conversion or
extension work that may
require planning permission or
building regulation approval.
50% of day 1 MV - Up to £500k
Valuation fees
Market rate
Loan term
Up to 18 months
Arrangement fee*
2%
Early redemption fee
None
Admin. fee
£995
Legal fees
Market rate
Loan to GDV
The loan to gross development value is inclusive of rolled
interest.
Additional monitoring
Further
information
In exceptional cases we may need to carry out additional
monitoring. In the event of requiring additional monitoring, we
reserve the right to charge an additional administration fee,
agreed in advance.
Servicing interest
Once the loan to GDV has been reached, the borrower will be
required to pay interest on a monthly basis.
Day one market value
Day one market value is defined as the first valuation report
conducted by an independent valuer on behalf of LendInvest.
Arrangement fee
The arrangement fee includes a 1% procuration fee as standard.
However, LendInvest has a flexible procuration fee policy. Speak
to our BDMs about the rates that could apply.
Speak to our experts today
Call 020 7118 1133
Email [email protected]
Visit intermediaries.lendinvest.com