Clients looking to invest in the short-term property market can now get specifically designed buy-develop-sell mortgages to provide near instant finance, writes Ben Marquand.
The mortgages have been developed by specialist lender BM Samuels and are targeted at clients who want to move into the short-term property redevelopment market where they often need to raise finance quickly. The lender promises immediate in principle offers subject to valuation, which means completed offers may take effect within days.
The non-status deals are available up to 70% LTV for property purchase plus 100% of the development costs, with a minimum loan of £25,000. The rate varies between 1.6% and 1.75% per month, depending on whether the broker takes a commission. There is a minimum loan period of three months, but the typical loan period is between six and nine months. However, unlike bridging loans there is a flexible end date to the loan, so any unforeseen problems can be dealt with before the property is resold.
Bernard Samuels, chairman of BM Samuels, said: ‘While many lenders have targeted investors in the buy-to-let sector which involves a long-term commitment, we believe there is plenty of demand from both residential and commercial investors and developers who are seeking a slice of the short-term property redevelopment market and need the right lender to back them.’