When looking to purchase an existing building, if you are looking to refurbish, Refurbishment Finance can be a good solution for you.
Century 10 Real Estate Finance are highly experienced when it comes to Refurbishment Finance. Refurbishment Finance works in a similar way to standard development finance, but given the higher upfront cost, a larger proportion of the loan is provided towards purchase costs.
We have a number of lenders who have strong appetite for Refurbishment Finance. With our network of lenders, we are are been able to potentially assist to source senior and stretch senior facilities for refurbishment projects.
We deal primarily with transactions from £1,000,000 and above up and can potentially source terms up to 75% LTGDV (Loan To Gross Development Value). This would usually be capped at a maximum 90% LTC (Loan To Cost). This could provide up to 100% of build costs, professional fees and associated costs, plus funds towards the land loan as well, if available.
The borrowers track record, professional team involved, site location, as well as many other factors would influence whether a lender would interested to provide finance on a refurbishment project. Each lender has their own criteria and products vary from lender to lender. The original purchase price, residual value from a valuation instructed by the lender, total development costs, GDV and POC (Profit On Cost) after finance are some of the factors that would dictate what loan amount we could look to achieve with our lenders.
Interest is typically capitalised to the loan and is repaid on sale or refinance of the completed property.
Refurbishment Finance is ideal for:
- office to residential schemes under PDR (Permitted Development Rights)
- purchasing and renovating dilapidated residential blocks of apartments
- conversion of large single houses into apartments
- extension of existing residential properties
- utilising airspace over existing properties
Should you wish to purchase a property quickly before proceeding to refurbishment finance, we can also assist with a Bridging Loan and exit into Refurbishment Finance, if this suits your needs.