The product will support developers in completing refurbishment works not subject to structural or planning changes
Specialist lender Hodge Bank has launched a new refurbishment bridge finance product for experienced property developers who intend to make improvements or change the layout of an existing property.
The refurbishment bridge product will be available for loans of between £500,000 to £5 million with a loan term of up to 24 months and a maximum of 75% LTGDV, where the cost of refurbishment is less than 20% of the total costs of the project. Interest margins will range from 8.50% to 11% plus the Bank of England base rate.
The new product has been created to provide short-term funding to assist with updating existing properties where structural changes or revised planning consent are not required. It is available to individuals, partnerships, LLPs, corporate entities, limited companies, and PLCs.
“We’ve found that some refurbishment projects simply don’t require the full rigour of a development facility and for projects where changes can be purely cosmetic or non-structural a simplified approach would be helpful,” Gareth Davies (pictured), head of development finance at Hodge Bank, said. “The refurbishment bridge product will support developers in completing refurbishment works not subject to structural or planning changes more quickly, and will streamline the process for them in line with current market demands.
“We realise that sometimes finding the budget to overhaul a property or to simply fit new kitchens or improve bathrooms can be challenging, so this new refurbishment product is perfect for developers looking for that extra financial funding to complete their refurbishments to a high standard and achieve the highest yields possible.”
Davies added that the launch of the new product is the latest in a series they have added to their portfolio over the last few months as part of Hodge’s support to property developers “at every stage of a project.”