Bridging
Hodge releases refurbishment bridging loan
Hodge Bank has added a refurbishment bridge finance product to its range to help experienced and active property developers make changes to investment properties.
The lender will offer short-term funding to renovate existing properties where structural changes or revised planning consent are not required, and to support completion.
It is available to individual investors, partnerships, Limited Liability Partnerships, corporate entities, limited companies and Public Limited Companies.
Loans sizes between £500,000 and £5m are available on terms of up to 24 months. The product has a maximum loan to gross development value (LTGDV) of 75 per cent, where the cost of the refurbishment of less than 20 per cent of the total project’s cost. Interest margins will vary between 8.5 per cent to 11 per cent plus base rate.
Gareth Davies (pictured), head of development finance at Hodge, said the lender found that some refurbishment projects did not require the “full rigour” of a development loan and a simplified approach would be helpful where changes were cosmetic or non-structural.
Davies 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.
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“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.”
Hodge has been on a bid to revamp its commercial and development mortgage offering, with the launch of a development finance product earlier this year and changes to its criteria.