Author: Mark Harrison.
Mark is the Managing Director of Breeze Capital and has over 30 years experience in bridging loans & development finance. You can check out his LinkedIn profile here.
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Refurbishment Loans Explained
Renovating a property can be both an exciting and daunting venture. Whether you’re planning to refurbish a tired old house into a HMO or revamping a buy-to-let property, securing the right financing is essential. With the right funding in place, you can bring your project to life without running into headaches along the way. This is where refurbishment loans come into play as they offer a simple, flexible solution for property developers, landlords and investors.
At Breeze Capital, we understand the challenges of property renovations, which is why we offer refurbishment loans designed to help you maximise your budget, reduce the cash you need to put into the deal and get your project off the ground quickly. As a privately funded lender based in Chester, we cover England, Scotland and Wales, providing bridging loans, refurbishment loans, and ground-up development finance for residential properties.
What is a Refurbishment Loan?
A property refurbishment loan is a short-term loan specifically designed to fund the costs of renovating a property. Unlike traditional mortgages, which are intended for buying homes, refurbishment loans are structured to cover the costs of the renovation itself and usually (but not always) are used just for investment properties. This might include everything from structural repairs to cosmetic upgrades, allowing you to upgrade an outdated property and increase its value. It’s a simple process; Buy, Refurbish, Rent & Refinance or BRRR as the industry calls it.
These loans can be incredibly useful for those looking to renovate a property either to sell or to add value before renting it out. The key advantage of a refurbishment loan is that it allows you to borrow based on the projected value of the property after the refurbishment (the Gross Development Value, or GDV), which means you can access a higher loan amount than you would through a standard mortgage.
Why Choose Breeze Capital’s Refurbishment Loans?
Breeze Capital offers a highly flexible and competitive refurbishment loan product with a range of features designed to help you get your project underway quickly and efficiently. Here’s why our refurbishment loan is the market leader.
High Loan-to-Value (LTV)
When it comes to securing a refurbishment loan, one of the key considerations is the loan-to-value (LTV) ratio. A higher LTV means you can borrow more money relative to the value of the property, reducing the amount of your own cash you need to contribute.
At Breeze Capital, we offer up to 85% LTV on day one of your refurbishment project, based on the property’s value. This means you can access a significant portion of the required funds right at the start. Additionally, we will also cover 100% of the build costs, so you don’t need to worry about finding the money to pay for construction materials or labour costs.
Additionally, we will also base our lending up to 75% of the GDV so when you combine all of these elements together; 85% LTV, 100% of refurb costs and 75% of the GDV, our refurbishment product really is the class leading refurb bridging loan for investors, developers and landlords alike.
Speedy Process with Title Insurance and In-House Valuations
We understand that time is often of the essence when it comes to property refurbishment. Delays in securing finance can result in lost opportunities, particularly when looking at buying at auction. That’s why we are committed to a fast and efficient lending process. We offer in-house valuations (using the AVM) for residential properties up to £500k, which helps us speed up the approval process and ensure you’re able to access the funds you need in just a few weeks, not months.
Additionally, we offer Title Insurance, which further accelerates the loan completion process. With these two features combined, we help ensure your loan is processed swiftly so you can get started on your renovation without delay.
Lending Up to 95% of the Purchase Price
One of the unique features of our refurbishment loans is that we’ll consider lending up to 95% of the purchase price. This means you don’t need to contribute as much upfront capital, leaving you with more money to fund your renovation work. The higher the loan percentage, the less you need to worry about upfront costs, giving you greater flexibility as your project progresses.
Is a Property Refurbishment Loan Right for You?
If you’re considering a property renovation, a refurbishment loan can be a smart and cost-effective way to fund the project. Whether you’re a first-time investor or an experienced property developer, Breeze Capital offers a solution that helps you achieve your goals more quickly and with less cash input from the borrower.
A refurbishment loan is particularly beneficial for those looking to increase a property’s value, either by selling it at a higher price or by renting it out at a better return on investment. If you’re planning to renovate your home or invest in a property that requires significant repairs or upgrades, a refurbishment loan could be the ideal way to fund your project and ensure its success.
Renovating a property can be incredibly rewarding and with the right financing, you can ensure that your project runs smoothly from start to finish. Breeze Capital’s refurbishment loans are designed to provide you with the funds you need, when you need them, offering a high LTV, fast loan processing and the flexibility to suit your specific project.
For more information on how Breeze Capital can help you with your property requirements, please call us on 01244 565095
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Or click here to go to our main page: www.breezecapital.co.uk