The client, a portfolio landlord, wished to purchase a 3 bed end-terraced house in Birmingham at auction for £220,000, in order to renovate and resell it. The property needed refurbishment works, estimated at £18,000, but was found to have additional damp and asbestos issues as well as roof damage, which added £15,000 to the cost of renovations.
Within the requested six week timeframe, Shawbrook was able to complete a bridging loan at 85% LTV. This loan included a ‘Lending for Refurbishment Costs’ product addition, in order that the customer could borrow £22,000 of the necessary funds to complete the renovations on the property.
Gavin Seaholme, Head of Sales at Shawbrook Bank, comments: “This case really highlights the benefit of our innovative Lending for Costs product addition.
We were one of the first to bring this to market back in 2018, and it has proven extremely popular, not only helping customers quickly secure their investment opportunities, but also to complete refurbishment projects to maximise their returns.
We launched the product option to meet the demands of the market, and with renovated properties offering the chance to attract more tenants, secure higher rents and boost the value of a property, it’s clear to see the need for this type of solution is as strong as ever.”
Original article featured here…
Earlier this month, Shawbrook published data from its Changing Face of Buy to Let Report. This data shows that landlords are already starting to improve the energy efficiency of their properties ahead of the new rules, coming into force in 2025.