Previously, Dragonfly’s refurbishment loans were capped at 70% LTV, after the deduction of all interest accrued during the term of the loan. Their new LTV extends to 75% excluding interest, which is added monthly.
The loans come with a 2% arrangement fee, an exit fee of 2% and charge interest at 11%pa. Alternatively, borrowers can select to pay a 2% initial fee, interest of 1.15% per month and avoid the exit fee.
The maximum refurbishment cost on the loans is £750,000, or 50% of the initial value of the property. The maximum loan size is £10m and 100% of refurbishment costs are typically funded in arrears. The maximum Loan to Gross Development Value is 70%, while the maximum Loan to Cost is 80%.
Mark Posniak, Head of Sales & Marketing, Dragonfly Property Finance, commented:
“Professional developers and landlords have always been integral to the Dragonfly proposition and, after discussions with brokers and clients alike, we have created a product that we believe provides them with considerably more flexibility and firepower — and has flipped refurb on its head. Our goal is to make ourselves the first port of call for the serious property professional and our refurbishment revamp will hopefully take us a step closer to achieving that.”
