LendInvest has completed its first Refurbishment Finance loan for an experienced developer in Scotland.
The specialist mortgage lender’s Refurbishment Finance loans are designed to help borrowers renovate or refit existing properties. Unlike a standard bridging loan, LendInvest refurbishment loans are lent against a borrower’s gross development value (GDV) meaning more leverage for the developer and less capital needed up front.
In this case, the borrower owned a workshop in a commuter village north of Glasgow that they intend to convert into a residential unit for sale. A number of other properties have undergone similar conversions and have been subsequently sold in the area recently, indicating strong demand.
Upon completion of refurbishment project, the property will be a two storey house with three bedrooms and is expected to be sold for around £375,000.
The loan is based on 70% gross GDV and lasts for nine months with a monthly interest rate of 1.10%.
Matthew Tooth, chief commercial officer at Lendinvest, said: “It is brilliant to see our first refurbishment deal closed for a Scottish developer following our expansion into the region at the end of last year.
“Demand for refurbishment finance in the region is high, and this project is a good example of a quick project that can turn disused properties into the housing that is so drastically needed.”