LendInvest completes first Refurbishment Finance loan with Scottish developer

LendInvest, the UK’s award-winning specialist mortgage lender, has completed its first Refurbishment Finance loan for an experienced developer in Scotland.

LendInvest’s Refurbishment Finance loans are designed to help borrowers renovate or refit existing properties. Unlike a standard bridging loan, LendInvest refurbishment loans are lent against a borrower’s gross development value (GDV) meaning more leverage for the developer and less capital needed up front.

In this case, the borrower owned a workshop in a commuter village north of Glasgow that they intend to convert into a residential unit for sale. A number of other properties have undergone similar conversions and have been subsequently sold in the area recently, indicating strong demand.

Upon completion of refurbishment project, the property will be a two storey house with three bedrooms and is expected to be sold for around £375,000. By working with the borrower to customise the way the works were monitored, LendInvest are supporting the smooth running of the project from the outset.

The loan is based on 70% gross GDV and lasts for nine months with an interest rate of 1.10% pcm. Due to the unpredictable nature of refurbishment projects, LendInvest’s longer loan term of 18 months allows the borrower more financial flexibility if the project requires an extended completion time.

Matthew Tooth, Chief Commercial Officer, Lendinvest, said: “It is brilliant to see our first refurbishment deal closed for a Scottish developer following our expansion into the region at the end of last year. Demand for refurbishment finance in the region is high, and this project is a good example of a quick project that can turn disused properties into the housing that is so drastically needed.“

Refurbishment finance loans were launched by LendInvest in February 2017. This is one of a number of recent product launches from LendInvest, preceded by Auction Finance, and more recently followed by Pre-construction Finance.