London Credit has launched an enhanced refurbishment finance range designed to support property investors undertaking light, medium and heavy refurbishment projects.
The updated range is available across residential, semi-commercial and commercial properties.
Loans are available from £150,000 to £3m with terms from three to 24 months, with pricing starting from 0.85% p.m. for light refurbishment projects.
For residential property, London Credit will lend up to 75% loan-to-value (LTV) from day one, for light and medium refurbishment projects and up to 70% LTV for heavy refurbishment projects, with loan-to-gross-development-value (LTGDV) available up to 70%.
For semi-commercial property, lending is available up to 70% LTV from day one, for light and medium refurbishment, and 65% LTV for heavy refurbishment projects, with LTGDV up to 70%.
For commercial property, loans are available up to 65% LTV from day one, with loan-to-gross-development-value available up to 60% depending on the project.
The lender will also provide up to 90% loan-to-cost for eligible refurbishment projects, supporting borrowers with the funding required to complete works and deliver improved property value.
Initial drawdowns are available up to 75% of current value for light and medium residential projects, 70% for semi-commercial projects, and 65% for heavy refurbishment or commercial schemes, with further drawdowns released in tranches as works progress and subject to monitoring.
Borrowers can choose from rolled-up, retained or serviced interest options, subject to verification of income.
The range also has no exit-fees and no early-redemption fees after the first three months of the loan term, providing flexibility for borrowers who complete projects ahead of schedule.
For smaller refurbishment projects up to £500,000, first-time developers may be considered.
Larger projects above £500,000 and all heavy refurbishment schemes require borrowers to demonstrate a track-record of completed projects and a minimum net-asset position.
London Credit head of underwriting Constantinos Savvides says: “Refurbishment finance remains one of the most active parts of the short-term lending market, as investors continue to improve existing property stock and reposition assets to meet demand.”
“Our enhanced range has been crafted to provide brokers with greater flexibility when placing refurbishment cases. Whether a client is carrying out light upgrades to a residential property or undertaking a more complex heavy refurbishment project, we are able to support the deal with clear structures and straightforward decision-making.”
