Shawbrook provides short-term heavy refurb loan
Shawbrook has provided a £185,000 short-term heavy refurb loan at 75% LTV to help investors purchase and convert a property in Southend, Essex.
Broker partner Advocate Finance approached Shawbrook with two clients looking to purchase a property to convert it into a high end six-bedroom HMO.
The specialist lender provided the short-term loan and then refinanced the property with a 0% arrangement fee.
The fee was used from an investment valuation onto an interest-only mortgage at a monthly fixed rate of 4.69%.
Emma Cox (pictured), sales director at Shawbrook Bank, said: “We are delighted that Shawbrook and Advocate Finance worked together to provide an excellent service to these two property investors to help them grow their impressive property portfolio.
“This case also provides a great example of our ‘Customer Appetite Statement’ in action and we look forward to it helping many more clients in the future.”
David Tonks, director at Advocate Finance, added: “Shawbrook Bank have been a brilliant partner allowing these clients to take run down properties and turn them into some of the most impressive HMOs you will find in the UK.
“The short-term loan facility allows the initial funding on the run down properties and once the works are complete the process to switch to a buy-to-let mortgage is quick and cost effective because there are no arrangement fees.
“The use of title insurance at the legal stage also allow funds to be raised in a matter of days after mortgage offer rather than the usual legal process that can take four to eight weeks with other lenders.”
The investors were able to purchase the property and complete the refurbishments in their predicted time frame.
This increased the property’s market value by approximately £200,000 and increased the gross market rent to over £46,000.