By Michael Minnie, Senior Business Development Manager
Buy-to-Let in the ‘new normal’, as we keep calling it will be about offering high quality homes to meet the record levels of rental demand, while also meeting the increasing regulatory requirements being set down by the government.
This comes in many forms, the Renters Reform Bill is placing an emphasis on long-term lets, and supporting tenants to make their rental properties their home.
EPC changes are increasing the environmental standards for all rental properties – and in an environment where energy prices have risen sharply, it is more important than ever for homes to be efficient for landlords to save themselves or their tenants money on running their properties.
The relationship between bridging finance and Buy-to-Let is an important one, as the flexibility of bridging allows landlords to make improvements across portfolios, or quickly acquire new properties with the intention of letting out.
In this context, we have two Refurbishment products – a Refurbishment LTV and Refurbishment GDV.
Yes it sounds like the same thing with different acronyms, but they both provide different flexible options for landlords.
Our LTV product focuses on speed and leverage, and is often for smaller-scale refurbishments targeted at EPC enhancements or modernisation.
Landlords may use this for new purchases or for refinancing. For example a landlord may mortgage one of their properties with our higher LTV product, and use the funds to make necessary improvements, be it for EPC reasons or to increase rental value.
Our bridging finance allows properties to have tenants in it, and then they can exit on to a Buy-to-Let.
Refurbishment GDV is for larger scale refurbishments that just fall short of developments.
We’re seeing this a lot with this summer’s increase in auction finance as more and more distressed assets are put up for sale following a challenging couple of years in the economy.
For investors, obtaining these properties at auction and restructuring them to help meet rental demand is a solid path to take, which can help more people find homes.
Giving landlords options
Over the past year, it might often have felt for landlords like they didn’t have a lot of choices as mortgage rates and new government rules conspired against them.
However, this focus on the long-term can only be beneficial for landlords if they have the right tools to prepare for it, which refurbishment finance offers.
LendInvest Loans Limited is a company registered in England & Wales with Company No. 09971600.
LendInvest Loans Limited is authorised and regulated by the Financial Conduct Authority (FRN:737073). LendInvest Loans Limited is a wholly owned subsidiary of LendInvest plc.
Borrowing through LendInvest involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.
LendInvest plc is a public limited company registered in England and Wales (No. 8146929). Registered Office: 8 Mortimer Street, London, W1T 3JJ.
For borrowers, borrowing through LendInvest involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not keep up repayments on your mortgage.