Whether you are a business owner, property developer, investment property owner or buy to let (BTL) investor, you may need finance to assist with necessary refurbishments. Refurbishment is a quick method of increasing the value of your investment, and a necessary process for the increasing number of developers buying a property in need of renovating with a view to an onward sale or letting out to prospective tenants.
WHAT DO YOU NEED TO KNOW ABOUT REFURBISHMENT FINANCE?
The amount of refurbishment finance available is dependent on the scale of the refurbishment. Refurbishment can range from light—for example, decoration, new carpets and general cosmetic updates—to heavy, such as installing a new bathroom, kitchen or adding an extension to a property.
The amount available can also depend on what the property will be used for, whether that be BTL, residential or commercial. Finally, the amount can depend on how much value the refurbishments will add to the property.
Lenders can lend in three ways for refurbishment. Firstly, they can lend a percentage of the purchase price to cover the costs of the refurbishments. Lenders can also lend on the gross development value—how much the property will be worth once all developments have been completed.
Finally, for property developers looking to move onto their next project, lenders are able to lend a percentage of the property’s value and set aside a sum needed to finish the development works.
HOW CAN ENNESS HELP WITH REFURBISHMENT FINANCE?
At Enness, we have established ourselves as market leaders within the refurbishment finance sector. Having been involved in developing some of the first rolling property refurbishment products since the 2008 crash, we have continued to help shape this area of the market and establish an excellent reputation as a result.
The key to achieving the best lending terms is access to the entire market, which is where we can help. If you have any queries on your refurbishment requirements, please do not hesitate to get in touch.