Refurbishment Finance. Funded works for existing properties

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Angel Berry
5 years ago
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1 Refurbishment Finance Funded works for existing properties

2 Contents Refurbishment Finance Refurbishment Finance Use case 1: Renovation Use case 2: Conversion into multiple occupancies Product Information Further information

3 Refurbishment Finance LendInvest Refurbishment Finance is designed for property professionals looking to refurbish or improve existing properties. Key features Versatile loans 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. Loan to GDV up to 70% 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.

4 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%

5 Use case 2: Conversion of large single unit into multiple dwellings Solution 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. Gross development value 1,500,000 Purchase Price 750,000 Client: Professional investor Karen is a property investor, with experience of adding value to residential properties and selling them on. Scenario Karen requires funding to purchase and transform a North London townhouse into four self-contained luxury apartments. Day 1 Loan 525,000 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%

6 Use case 3: Office to residential conversion Solution 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. 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% 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. Interest rate 0.92% Profit on costs 46.11%

7 Product information DESCRIPTION Criteria 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 50% of day 1 MV - Up to 500k Valuation fees Market rate Loan term Up to 18 months Applicant experience Applicant Property Charge Tenure Refurbishment Demonstrate experience of similar projects. UK residents and UK companies. Residential 1st charge Freehold, leasehold with more than 60 years remaining. Heavy refurbishment, including structural, conversion or extension work that may require planning permission or building regulation approval. Arrangement fee* 2% Early redemption fee None Admin. fee 995 Legal fees Market rate

8 Loan to GDV The loan to gross development value is inclusive of rolled interest. Further information Additional monitoring 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.

9 Speak to our experts today Call Visit intermediaries.lendinvest.com

Product Guide. Specialist property finance

Product Guide. Specialist property finance Product Guide Specialist property finance 020 7118 1133 borrow@lendinvest.com intermediaries.lendinvest.com 1 020 7118 1133 borrow@lendinvest.com intermediaries.lendinvest.com Our core focus is to deliver.