The refurbishment buy-to-let mortgage provides borrowers with an offer
based on the valuation of the property after the refurbishment work is
complete. In theory this could mean that landlords will be able to secure a larger advance than is currently available
Bob Young, sales and marketing director of Capital Home Loans, said: "It
will mean, for example, someone buying a property for say £80,000, spending
£10,000 on refurbishing it, and having something worth £120,000 at the end
of the process. We will advance him 80 per cent of the £120,000, rather than the £80,000."
Once the purchase is completed borrowers can obtain monies relating to the current state of the property, and once the refurbishment work is completed further money is released.
The product is available through CHL’s normal buy-to-let product range of bank base rate trackers and fixed interest products.
