This product allows clients to purchase or refinance the property, complete the works and then release the additional capital value that they have created following the refurbishment without any further arrangement fees.
HMO conversions – Release up to 75% LTV based on the after works value
We will lend up to 75% of the after-works value with a retention to 75% of the current value / purchase price. The retention is released once works are completed and a new valuation is provided with confirmation that the property is tenanted.
The clients have the option of either a 3 or a 5 year term and can have this on an interest only basis or they can choose part capital repayment where they will de-leverage their balance over the term of the loan.
Clients can release the funds as and when the work is done, so no 6 month minimum. Also the client has the security of having a longer term deal and not needing to refinance to access any increase in value.