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CHL Mortgages launches BTL refurbishment range

  • 30/06/2022
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CHL Mortgages launches BTL refurbishment range
CHL Mortgages has introduced a buy-to-let (BTL) refurbishment product range to help landlords improve the energy rating and general condition of their rental stock.

The products also allow borrowers to release the costs of the refurbishment upon completion, without having to change product.

CHL’s refurbishment product range includes three products: light refurbishment, cosmetic improvement and Energy Performance Certificate (EPC) improvement.

The first two products are designed to increase the future asset and rental value of the property, and the latter has a green mortgage option for landlords wanting to improve the energy efficiency of their property.

The range is available to individuals and limited companies and is applicable on standard buy-to-let properties, small houses in multiple occupation (HMO) and small multi-unit freehold blocks (MUFB).

Five-year fixed rates start at 4.41 per cent and lending will be calculated on the pre-works value with a retention held based upon the post-works estimated valuation.

The product range has a maximum 75 per cent loan to value (LTV) pre and post-works. This option means landlords can release more if the value of the property has increased post-works and the maximum cost of work must not exceed 25 per cent of the pre-work property value.

CHL’s light refurbishment product has been designed for works not requiring building regulation sign off and includes works that can be signed off under the Competent Person Scheme.

The EPC improvement product is for landlords looking to improve the energy efficiency of their buy-to-let property to meet the UK Governments’ proposal for existing rented properties to have a minimum EPC rating of C or higher from April 2025

The cosmetic improvement product is for properties requiring cosmetic and minor improvement and repairs works, allowing the landlord to improve the condition of the property.

Refurbishment works must be completed within three months of completion of the initial advance and landlords must supply a detailed schedule of the proposed works at application.

Ross Turrell (pictured), commercial director at CHL Mortgages said: “This product range has been designed and developed in line with feedback received from our intermediary partners and a growing number of their landlord clients who are looking for a product which offers a single, one-stop solution which removes uncertainty around funding refurbishment supported by a simple process.

“This alternative green mortgage product is more than a simple pricing play and provides an additional and viable option to alternative forms of finance such as ‘bridging’ and ‘refurb in term’ solutions whilst helping to reduce administrative burdens and save on multiple inspection and legal fees. Our extensive and highly knowledgeable BDM team will play a key role in supporting our intermediary partners to help them explain the options we can now provide that will make a real difference for their landlord clients.”

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