LendInvest has launched a new refurbishment finance product aimed at experienced property professionals.
The refurbishment product has been specially designed to help property investors renovate or refit existing properties. Unlike a standard bridging loan, LendInvest refurbishment loans are lent against a borrower’s gross development value (GDV) and funds are released at stages throughout the refurbishment works. Interest is rolled up and paid at the end of the term.
Interest is charged at 0.92%-1.1% per calendar month and payable at the end of the term.
The product is available on loans between £100,000 and £2 million and on terms up to 18 months.
The maximum loan to value (LTV) is 70%.
Steve Larkin, director of development finance at LendInvest, said: “At LendInvest, our deep experience of lending both bridging and development finance puts us in an desirable position that allows us to develop tailored products like our new refurbishment loans.
“These will appeal to the type of property professional for whom an LTV-based bridging loan is not flexible enough, yet who doesn’t need a full development loan for their relatively straightforward refurbishment project. Basing our refurbishment loans on GDV not LTV means more leverage for the developer and less capital needed upfront.
“It’s this flexibility that is crucial to borrowers, and for which LendInvest loans are increasingly becoming known among borrowers and their intermediaries.”