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6. Refurbishment finance

  • How does LendInvest define “refurbishment” for a Refurbishment loan?

    Heavy refurbishment, including structural, conversion or extension work that may require planning permission or building regulation approval. For example: extensions, loft conversions, change of use of premises to residential use, conversion of a single unit to flats and works under permitted development. Where planning permission is required, this will need to be in place prior to completion of the loan.

    The refurbishment costs must be greater than £25k but less than £500k, and be greater than 15% of the day 1 market value of the security but less than 50% of the day 1 market value of the security.

    For the avoidance of doubt, we will not finance basement excavations through our Refurbishment finance product.

  • What should be included in the schedule of works?

    Description of works, detailed costings including any appointments around planning (eg architects) and other professional fees, along with a timeline for the work.

  • Does LendInvest allow capital raising if I already own the property?

    Yes, within the limits of the loan.

  • Will LendInvest accept any exit other than sale?

    Yes. We accept both refinancing and sale as exits.

  • Where will you cap the initial (day 1) loan?

    At 70% gross of the market value. Arrangement fees and the general insurance fees will then be deducted before we provide the net loan.

  • How does LendInvest control the refurbishment draws? Does the valuer inspect progress of works (and if so is there a charge for each visit?) or do you release against the borrower’s invoice, photos etc?

    There is a one-off monitoring fee and the method of monitoring (ie by the valuer, a quantity surveyor or our staff) will be decided by our underwriter. We will inform you of this when we underwrite the loan.

  • So what exactly is the £1,250 monitoring fee for?

    The fee is to cover the cost of monitoring, an initial inspection and/or ongoing monitoring, whether that is done by the monitoring surveyor, the valuer or the LendInvest team.

  • If my project does not meet your criteria for the Refurbishment finance product, what are my alternatives?

    Smaller refurbishment projects (ie with cost of works less than £25k) may well be suitable for one of our bridging loans, where the maximum loan to value on day 1 is 75%.

  • Who do I contact for a drawdown?

    Please contact our loan servicing team. The team will then refer to the special conditions in the Letter of Offer (which will have been written by the underwriter) to confirm what style of monitoring is required to effect the drawdown.

  • What is the maximum number of units LendInvest will accept under a Refurbishment loan?

    We will finance up to a maximum of 10 units under a single refurbishment loan.

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