Landlord and BTL Blog: Light refurbishment BTL mortgages

Wednesday, March 04, 2015

Light refurbishment BTL mortgages

The Propert Hawk mortgage service can help applicants with all kind of non standard requirement such as a light refurbishment.

The presentation of rental accommodation can make a real difference to its appeal to tenants and also to rental income.

For example a modern kitchen and bathroom are highly desirable in a buy-to-let property.

Properties that are in need of some light refurbishment work such as a new bathroom/kitchen, electrical work or damp-proofing, can be excellent investments for landlord clients. They may be able to purchase such a property at a reasonable price and then increase its value by undertaking some straightforward improvements.

There are a number of buy-to-let lenders who have specific ‘light refurbishment’ products designed for landlords in this niche area. Saffron Building Society currently has two light refurbishment products including a 5.39% term tracker which is available up to 80% loan-to-value (LTV). They will provide finance based on the current property value and keep a retention of up to 80% of the estimated after-works value, which will then be released to the client after a satisfactory re-inspection of the property.

Kent Reliance, Paragon Mortgages and Shawbrook Bank also have their own ‘light refurbishment’ products, providing a wide range of fixed rates and tracker rates available up 75% LTV.