It also introduces several key features
Specialist short-term lender Hope Capital has announced significant rate reductions to its residential medium refurbishment loans, now offered up to 75% loan-to-value (LTV) on day one at a rate of 0.99%.
The loan, which covers properties valued up to £5 million for terms ranging from three to 18 months, is designed for projects needing moderate to extensive repairs, including extensions, changes of use, and conversions. It also supports projects requiring permitted development rights or planning permission.
In addition to the rate reduction, Hope Capital is introducing several key features such as up to 70% gross development value (GDV), dual representation, title insurance, no exit fees, dedicated underwriter, no upfront legal undertaking, and desktop valuations, depending on the schedule of works.
Other features include various payment options to increase the net loan if needed, accommodation for both experienced and inexperienced borrowers, and the ability to add additional securities to cover 100% funding.
The enhancements to the medium refurbishment loan follow Hope Capital’s recent expansion of its dual representation offering, now applicable to all cases, not just residential auction deals.
“The demand for refurbishment bridging loans remains very strong, with investors increasingly looking at refurbishment and development opportunities to either improve the property, increase yield or for capital gain,” said Kim Parker (pictured), head of sales at Hope Capital.
“With our latest offering, our clients can receive up to 75% LTV day 1 and up to 70% GDV, with the ability to cover 100% of the cost of works meaning we can support our borrower with as much capital as possible to undertake their project.
“At Hope Capital, we make it our priority to regularly review the market, listen to our brokers and their clients, to see what the demand is, so we can create and deliver innovative bridging loan solutions to meet a diverse range of borrower’s needs.”
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