Alternative Bridging Corporation has introduced a series of specialist Refurbishment Loans that allow further drawdowns and reduced rates on Practical Completion (PC) of the works.
The range, which is available for light and heavy refurbishments on residential and commercial property, features initial advance for purchase or refinance, further drawdowns to fund improvements, final advance on Practical Completion (PC) of the works, and reduced interest rate following PC. There is also the option on non-regulated loans to extend or convert to a 3–5 year interest-only term loan.
The refurbishment loans are available on regulated and non-regulated loans, can be secured as a first or second charge on residential property, or a first charge on commercial property, and are available for loan sizes from £350k to £3m.
The details are as follows:
First charge light refurbishment
- Maximum Loan to Gross Development Value: 70%
- Initial loan: 65%
- Rate: 0.75% pm reducing to 0.65% pm on PC
Second charge light refurbishment
- Maximum Loan to Gross Development Value: 65%
- Initial loan: 60%
- Rate: 0.85% pm reducing to 0.75% pm on PC
First charge heavy refurbishment
- Maximum Loan to Gross Development Value: 65%
- Initial loan: 60%
- Rate: 0.85% pm reducing to 0.65% pm on PC
Commercial refurbishment
- Maximum Loan to Gross Development Value: 65%
- Initial loan: 60%
- Rate: 0.85% pm reducing to 0.75% pm on PC
Jonathan Rubins (pictured), director at Alternative Bridging Corporation, said: “Our new range of Refurbishment Loans provide investors and owner occupiers with a comprehensive set of funding options that have been specifically developed to finance the different stages of a refurbishment project across both residential and commercial property. As experienced property lenders, we understand that there can often be unexpected additional costs that arise during a renovation and so, as works are completed, we are able to advance additional funds.
“On top of this, we can also reduce the rate on Practical Completion of the works and provide the option for most borrowers to extend the loan or convert to a three to five year interest-only term loan. The ranges provide full flexibility to meet the individual needs of the customer.”