Shariah-compliant bridging lender launches new products for A-C rated BTL properties

Shariah-compliant bridging provider, Offa, has launched 'Energy Performance Improvement Capital' (EPIC) – a reduced rate, short-term finance product designed specifically for buy-to-let properties with an energy performance rating of A to C.

Related topics:  Commercial,  Commercial finance
Rozi Jones
13th May 2021
Bilal Ahmed Offa
"More needs to be done as the Government moves towards its net zero carbon target by 2050 and landlords have a key role to play in that."

This new buy-to-let bridging finance aims to encourage landlords to invest in energy-efficient properties and increase the proportion of A-C rated properties in the private rented sector.

Recent Government legislation requires all rental properties, other than those with agreed exemptions, to have an EPC rating of E or higher to be legally let in the private rental sector. From 2025 this is being raised to an EPC rating of C for new tenancies and in 2028, a minimum C rating for all tenancies.

According to the NRLA, there are currently 19 million homes rated below C, including an estimated 10 million homes in the private rental sector. There remains a significant proportion of rental stock across the UK that is F and G rated.

Offa’s new rates start from 0.49% for purchase and re-bridge and include free valuations.

Offa operates in accordance with recognised universal Islamic and ethical financing principles and provides commercial, residential, refurbishment and planning bridging loans, as well as development finance.

Bilal Ahmed, CEO of Offa, commented: “Landlords have made great strides in adding more energy efficient homes to the PRS – or upgrading properties to C or above standard – over the past decade. However, more needs to be done as the Government moves towards its net zero carbon target by 2050 and landlords have a key role to play in that.

“EPIC is available up to 75% LTV with maximum terms of 12 months and has been developed for homes with an energy rating of C or above. It will be an incentive for landlords to add energy efficient homes to the sector, benefitting tenants through lower energy bills and the environment through reduced consumption.

“If landlords are to improve the energy efficiency of their BTL stock, they may need the short-term finance to enable them to do so. Making sure there are attractive options, whilst recognising the efforts to upgrade existing properties, is an important element of this.”

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