The lender’s new Refurbishment Bridge Finance product is designed to provide short-term financing to support the refurbishment of existing properties where structural changes or revised building permits are not required, and to help complete the refurbishment process more efficiently.
It provides experienced and active developers with straightforward financing to support real estate rehabilitation projects and is available to individuals, partnerships, LLPs, corporations, limited liability companies and PLCs.
Gareth Davies, Hodge’s Head of Development Finance, explains the rationale for launching the new product: “We have found that some renovation projects simply do not require the full rigor of a development facility and for projects where changes may be purely cosmetic or non-structural a simplified approach would be helpful.
“The Refurbishment Bridge product will help builders complete refurbishment work that is not subject to structural or design changes faster and adapt the process for them to current market requirements.”
Gareth added: “We recognize that it can sometimes be difficult to find the budget to renovate a property or to install new kitchens or upgrade bathrooms. Therefore, this new renovation product is perfect for developers looking for additional financial resources to complete their renovations at a high level and achieve the highest possible returns.”
“The Refurbishment Bridge product will be available for loans between £500,000 and £5m with a loan term of up to 24 months, with a maximum LTGDV of 75% and where refurbishment costs represent less than 20% of the total cost of the project . Interest margins will be between 8.50% and 11%, plus the Bank of England base rate.”
Gareth summarizes: “The launch of this product is the latest in a series we have added to our portfolio over the last few months as we continue to work to support developers at every stage of a project.
“As a specialist lender, we aim to provide flexible and bespoke solutions, able to provide developers with all the support they need at every stage of a development, from acquisition loans, to development (possibly including Stretch Senior) or renovation a sales bridge or long-term investment financing up to the point of exit.”