Octane Capital has increased the level of works permitted from 50% up to 100%+ of the current market value of a property for heavy refurbishment projects.
The lender claims this will give landlords the ability to maintain a strong margin.
Octane Capital has also increased both the maximum LTV (Day One) and maximum LTGDV (Loan to Gross Development Value) up to 75%.
Mark Posniak, managing director of Octane Capital, said: “Revisiting our refurb range was a logical step given our renewed confidence in the outlook for UK property and the broader forces at play within the rental market.
“Refurbs are not just a way for landlords to manufacture value out of their portfolios to mitigate the impact of taxation changes but also to reinvent them to remain competitive alongside the growing threat that is PRS. The result is a surge in demand for refurbs across the board, from light and moderate to heavy.
“Our message to brokers is that as well as offering lower rates, we’ll now lend more and be even more flexible, and so should be their first port of call.”
