LendInvest has changed its approach to lending on commercial property and funding commercial-to-residential conversion projects.
Borrowers wishing to fund the purchase of, extend the lease on, or refurbish a commercial property where the use will remain commercial, are directed to the updated commercial bridging product.
LendInvest has increased the maximum term for its commercial bridging loans from 12 to 24 months, and reduced rates.
Its commercial bridging rates vary between LTV but the base 60% has been reduced from 0.90% to 0.79%.
Phil Mabb, property finance broker, said: “Everyone’s happy with a cheaper rate and longer term. I’ve often said there’s a mid-term proposition in the market. It’s good but it could be longer.”
Borrowers seeking a loan to convert a commercial property for residential occupation are invited to apply for LendInvest’s pre-construction finance (if the project requires planning to change the property’s use), refurbishment finance or a development finance loan (for larger scale conversions).
LendInvest has reduced the rates payable for a number of these products and has reduced the minimum loan size on pre-construction finance loans from £1m to £75,000.
Ian Boden, sales director at LendInvest, said: “All of our products are built with the borrower in mind, meaning we must be continually flexible about adapting product offerings and scrutinising our range to see where improvements can be made.
“Commercial-to-residential conversions are a very popular choice among borrowers for maximising the use of a property while creating a large return on investment.
“Fine-tuning our approach to funding both same-use and conversion commercial projects is a result of listening to our borrowers and what works for them.”