London Credit has expanded its refurbishment finance range, with new terms and funding parameters aimed at property investors working on residential, semi-commercial and commercial projects.
The lender said the updated range covers light, medium and heavy refurbishment, giving brokers wider options for clients seeking to improve, convert or reposition assets.
Loans are available from £150,000 to £3 million over terms of three to 24 months, with pricing starting from 0.85% per month for light refurbishment cases.
For residential property, London Credit will lend up to 75% loan-to-value from day one on light and medium refurbishment projects, and up to 70% on heavy refurbishment projects. Loan-to-gross-development-value is available up to 70%.
For semi-commercial property, the lender will offer up to 70% loan-to-value from day one on light and medium refurbishment, and up to 65% on heavy refurbishment projects, with loan-to-gross-development-value up to 70%.
For commercial property, loans are available up to 65% loan-to-value from day one, with loan-to-gross-development-value up to 60%, depending on the scheme.
London Credit said it will also provide up to 90% loan-to-cost on eligible refurbishment projects, with initial drawdowns of up to 75% of current value for light and medium residential cases, 70% for semi-commercial projects, and 65% for heavy refurbishment or commercial schemes. Further drawdowns are released in stages as works progress and are subject to monitoring.
Borrowers can choose from rolled-up, retained or serviced interest options, subject to income verification. The lender added that there are no exit fees and no early redemption fees after the first three months, giving borrowers more flexibility if projects complete ahead of schedule.
London Credit said first-time developers may be considered for smaller refurbishment projects of up to £500,000. For larger cases above that level, and for all heavy refurbishment schemes, borrowers must show a track record of completed projects as well as a minimum net asset position.
The launch follows other changes to the lender’s short-term proposition this month, including rate reductions across its residential bridging range and the introduction of a commercial bridging product with a serviced interest option.
Constantinos Savvides, head of underwriting at London Credit, says: “Refurbishment finance remains one of the most active parts of the short-term lending market, as investors continue to improve existing property stock and reposition assets to meet demand.
“Our enhanced range has been crafted to provide brokers with greater flexibility when placing refurbishment cases. Whether a client is carrying out light upgrades to a residential property or undertaking a more complex heavy refurbishment project, we are able to support the deal with clear structures and straightforward decision-making.
“Providing brokers with practical funding solutions, competitive pricing and direct access to experienced decision-makers who understand the realities of refurbishment projects remains fundamental to how we work.”
