Crystal Specialist Finance (CSF) has finalised its first Precise Mortgages’ Refurb Buy to Let case.
It completed the application from start to finish in 17 working days.
The client is initially borrowing a gross loan of £197,453 against a purchase price of £276,000 and is spending £15,500 on a complete refit.
The post-work valuation is expected to come in around £325,000 at which point in the next six months the finance will move onto a buy-to-let term with a pre-agreed offer of £243,750 (75% LTV).
The property is expected to bring in £1,150 per month with repayments of £717.53, creating a surplus of £5,189 per annum for the client.
The new Precise Mortgages’ product is designed to help landlords maximise rental yields by refurbishing the target property before they rent it out, bringing together the flexibility of bridging finance with an exit onto a long-term buy-to-let mortgage once the work has been completed.
No mortgage repayments are required whilst the refurbishment works are being completed.
Jo Breeden (pictured), managing director of CSF, said: “Our statistics show that refurbishment bridging enquiries have risen 31% between August 2017 to September 2018 against the previous equivalent 12-month period.
“It is imperative lenders address this need, and we can already see the demand for this particular product.”
Alan Cleary, managing director of Precise Mortgages, added: “We’re always thinking of innovative new ways we can help landlords who are keen to explore new areas of the market.
“Our latest proposition will appeal to the growing number who are looking for a different way of increasing their rental yields and capital values.”