The lender's new Refurbishment Bridge Finance product has been created to provide short-term funding to assist with updating existing properties where structural changes or revised planning consent are not required and to support the completion of the refurbishment process more efficiently.
It will provide experienced and active developers with straightforward finance to assist with property refurbishment projects, and is available to individuals, partnerships, LLPs, corporate entities, limited companies and PLCs.
Gareth Davies, head of development finance at Hodge, explained the reason for introducing the new product: “We’ve found that some refurbishment projects simply don’t require the full rigour of a development facility and for projects where changes can be purely cosmetic or non-structural a simplified approach would be helpful.
“The Refurbishment Bridge product will support developers in completing refurbishment works not subject to structural or planning changes more quickly, and will streamline the process for them in line with current market demands.”
Gareth added: “We realise that sometimes finding the budget to overhaul a property or to simply fit new kitchens or improve bathrooms can be challenging, so this new refurbishment product is perfect for developers looking for that extra financial funding to complete their refurbishments to a high standard and achieve the highest yields possible.”
“The Refurbishment Bridge product will be available for loans of between £500k to £5m with a loan term of up to 24 months, with a max of 75% LTGDV and where the cost of refurbishment is less than 20% of the total costs of the project. Interest margins will range from 8.50% to 11%, plus Bank of England Base Rate.”
Gareth concludes: “The launch of this product is the latest in a series we have added to our portfolio over the last few months, as we continue working to support property developers at every stage of a project.
“We are dedicated as a specialist lender to delivering flexible and tailored solutions capable of providing developers with all the support they need, at every stage of a development, from acquisition loan, through the development (potentially including Stretch Senior) or refurbishment and exiting via a sales bridge or longer-term investment finance.”
