Hope Capital has launched a new loan tailored to developers looking to convert commercial buildings into residential or semi-commercial properties.
Commercial to residential conversion rates start from 0.92% up to 70% LTV and commercial to semi-commercial rates from 0.95% up to 65% LTV. This is a reduction from the lender’s previous commercial rates, which begin at 1.09%.
The new product is tailored to boost properties in prime urban areas, by repurposing existing commercial buildings which provides significant cost savings compared to having to tear down and build from scratch.
Loans are available from £100,000 up to £5m for light, medium, or heavy refurbishment projects.
Up to 100% of build costs are covered and Hope Capital offers dual representation up to £750,000, no exit fees, and flexible payment options including deducted, fully serviced, part & part and flexi.
Loans are available on 3-18 month terms and up to 100% of the purchase price is available with additional security as a first or second charge.
Kim Parker, head of sales at Hope Capital, commented: “Our latest commercial loan supports our ESG strategy by backing developers committed to sustainable practices. It also positions them strongly in a market where demand for affordable housing and mixed-use spaces continues to grow. On top of that, this type of investment offers key advantages, such as higher rental yields, alignment with market needs, and obtaining a smoother approval processes for construction works.
"Ultimately, this exclusive product provides a fantastic opportunity for our borrowers to capitalise on a higher LTV and rates which are significantly cheaper compared to standard commercial offerings in the market.”
