Shawbrook Bank’s commercial arm has announced a ‘Lending for Refurbishment Costs’ add-on for its short-term lending range, allowing customers to borrow up to 100 per cent of refurbishment costs for a single large facility.
Once agreed upon, the entire loan will be made available to the borrower on the first day, with the maximum amount set at either 85 per cent LTV against the lower of day one purchase price or value, or 70 per cent of gross development value or after works value, depending on which is lower.
The price is set on a loading basis with 0.10 per cent added to the 75 per cent LTV margin, with 0.80 per cent per month on single lets, multi-units, and HMOs, and for semi-commercial security, 0.91 per cent per month. Repeat borrowers will also be able to benefit from the 0.25 per cent discount that the Bank offers across its product range. The add-on will be restricted to a limited panel until full market launch later this year.
Shawbrook Commercial Mortgages sales director Emma Cox says: “The ability to borrow 100 per cent of refurbishment costs under one facility can be critical for investors looking to add value and develop their portfolios, and we are delighted to be able to support this activity.”