Hodge provides bridging loan for renovation
Hodge Bank has added a renovation bridging finance product to its range to help experienced and active property developers make changes to investment properties.
The lender will provide short-term financing to renovate existing properties where structural changes or a revised planning agreement are not required, and to support completion.
It is available for Individual Investors, Partnerships, Limited Liability Companies, Legal Persons, Limited Liability Companies and Public Limited Companies.
Loan sizes between £500,000 and £5 million are available for terms of up to 24 months. The product has a maximum Loan to Gross Development Value (LTDGV) of 75%, where the cost of renovation is less than 20% of the total project cost. Interest margins will vary between 8.5% and 11% plus the base rate.
Gareth Davies (Photo)head of development finance at Hodge, said the lender had found that some refurbishment projects did not require the “full rigor” of a development loan and that a simplified approach would be useful where changes were cosmetic or not structural .
Davies added: “We realize that sometimes finding the budget to renovate a property or simply install new kitchens or upgrade bathrooms can be difficult, so this new renovation product is perfect for developers looking for that financial funding. extra to complete their renovations to a high standard. standard and achieve the highest possible yields.
“The launch of this product is the latest in a series that we have added to our portfolio over the past few months as we continue to work to support property developers through every stage of a project.”
Hodge has attempted to revamp its commercial and development mortgage offering, with the launch of a development finance product earlier this year and changes to its criteria.
Shekina is the business writer for Mortgage Solutions. She has over four years of experience in the B2B publishing market, with previous industries including accounting, pets, funerals, hospitality, retail and jewelry. She currently reports mortgage market news and liaises with financial clients to produce sponsored content. Follow her on Twitter at @ShekinaMS