Lendinvest launches refurbishment loan based on GDV

Lending levels are assessed against a borrower’s gross development value (GDV) – the value of the property once finished – with funds being released at stages throughout the refurbishment works.

This differs from standard bridging loans, which are based on loan-to-value (LTV) calculations. Although a maximum loan-to-value of 70% still applies.

Interest on the new product, set between 0.92% and 1.1% per month, is rolled up and charged as a total amount at the end of the term.

The product is available on loans between £100,000 and £2m on terms of up to 18 months.

Director of development finance Steve Larkin (pictured) said: “These [products] will appeal to the type of property professional for whom an LTV-based bridging loan is not flexible enough, yet who doesn’t need a full development loan for their relatively straightforward refurbishment project. Basing our refurbishment loans on GDV not LTV means more leverage for the developer and less capital needed upfront.”

Refurbishment finance is Lendinvest’s first product to be launched in the new year, following the rollout of development exit loans in November and auction finance in December last year.