The product, which has been designed to aid property investors renovate or refit existing properties, is lent against a borrower’s gross development value (GDV), with funds released at stages throughout the works.
Key features of the new LendInvest refurbishment finance product:
- The loan is based on GDV, not loan-to-value (LTV), and has more than one drawdown
- Interest is charged at 0.92-1.1% per calendar month and payable at the end of the term
- Available on loans between £100,000 and £2m
- Available on terms up to 18 months
- A maximum LTV of 70% applies.
Steve Larkin, director of development finance at LendInvest, said that its experience of lending both bridging and development finance put it in a desirable position to develop tailored products.
- Octopus Property cuts refurbishment rates
- Goldentree launches new mezzanine product
- Masthaven targets strong first-year growth
“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.”