When looking to purchase an existing building, refurbish or convert it to residential, Refurbishment Finance can be a good solution for you.
Century 10 Real Estate Finance are highly experienced when it comes to Refurbishment Finance. Refurbishment Finance works in a similar way to standard development finance, but given the higher upfront cost, a larger proportion of the loan is provided towards purchase costs.
We have a large number of lenders who have strong appetite for Refurbishment Finance. With our lenders, we are able to provide senior and stretch senior facilities for refurbishment projects.
We have many lenders in this space we can structure and arrange finance with from £1,000,000 upwards at up to 75% LTGDV (Loan To Gross Development Value). This would usually be capped at 90% LTC (Loan To Cost). This could provide up to 100% of build costs, professional fees and associated costs, plus funds towards the land loan as well.
The leverage would be subject to:
- the developers track record
- the professional team involved
- site location
- as well as other factors
The LTC would be subject to valuation and based on the purchase price, total development costs, GDV and POC (Profit On Cost) after finance. These are some of the factors that would dictate what loan amount we could achieve with our lenders.
Where required, we can also offer the possibility of Equity Finance or a Joint Venture Partner where you require more equity to realise the project. We have Equity Investors that we can introduce on a case by case basis.
Interest is typically capitalised to the loan and is repaid on sale or refinance of the completed property.
Refurbishment Finance is ideal for:
- office to residential schemes under PDR (Permitted Development Rights)
- purchasing and renovating dilapidated residential blocks of apartments
- conversion of large single houses into apartments
- extension of existing residential properties
- utilising airspace over existing properties
Should you wish to purchase the property quickly before proceeding to refurbishment finance, we can also help assisting with a Bridging Loan.