Hope Capital Property Finance has launched a residential bridging product offering loans against the anticipated finished value of a property, with the full facility available on completion.
Max GDV offers lending at up to 70% loan-to-gross-development-value (LTGDV), with a rate of 0.87%, and is aimed at experienced residential borrowers carrying out cosmetic light refurbishment works.
The product can be used for purchases, refinances and capital raises, with loan sizes ranging from £100,000 to £1 million and terms of three to 12 months.
Unlike facilities where refurbishment funding is released in stages, Max GDV allows borrowers to draw down all funds on day one. Hope Capital said this could give investors additional capital to progress works or use elsewhere in their property activities.
DAY-ONE FUNDING
The launch follows Hope Capital’s Max Net product and extends its approach to upfront funding to loans assessed against the anticipated finished value of residential property.
Other features include a flat fixed rate, dual legal representation, no upfront legal undertaking, full title insurance and no exit fees. Flexible payment options are also available.
Kim Parker (pictured, left), director of lending operations and commercial strategy at Hope Capital Property Finance, says: “Over recent months, we’ve seen growing demand from experienced residential borrowers who want more capital available upfront, both to progress their current project and potentially explore further business opportunities.
“Max GDV responds to that demand by bringing together lending against the finished value and access to all loan funds on day one, rather than through refurbishment tranches.
“For brokers, it provides another option for clients looking to make the most of their property’s potential, with the flexibility to move quickly when opportunities arise.”
Laura Carr (pictured, right), director of underwriting, compliance and stakeholder relations at Hope Capital Property Finance, says: “Max Net has demonstrated the demand for products that give borrowers access to more capital upfront. Max GDV builds on that success by applying the same principle to lending against the anticipated finished value of the property.
“For borrowers undertaking cosmetic light works, the value they intend to add to the property is an important part of the picture for our underwriting team.”
