Property Investors Network - June 2014
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This month we teamed up with our Shawbrook Business Patnert Ian Hogarth to dicuss refurbishment finance.
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Property Investors Network - June 2014
- 1. Marcus, Peter or Adrian office: 01275 370360 e-mail: contact@mortgage-style.co.uk Independent, truly whole-of-market brokers. Specialists in Buy to Let, HMO’s, and support many local businesses including other brokers
- 2. Tonight: Introducing… Ian Hoggart our Shawbrook Business Partner In other news… • Unlicensed HMO Finance still available at Residential rates (subject to 2 storey, 4 bedroom maximum, and must be laid out as a standard home). • More clients taking advantage of the drawdown facility to obtain up to 85% of the value of their property, no minimum income requirement, and you can retain your existing mortgages on the property with the new lender just releasing the difference! • Lastly, Flexible Mortgages still proving incredibly popular with clients releasing huge amounts of capital using their private residence with no charges for early repayment or drawing back the funds for use later! Just be aware Valuations are becoming more strict so speak to us now to get Applications set up at the maximum property values we can obtain!
- 4. Residential Refurbishment : Experienced Property Professionals with a strong personal net worth Client looking to purchase refurbish, improve or convert and then keep. 0.25%* RBD. Key benefit - HMO conversions • 75% now - 75% of after work valuation • no planning • Intending to hold • Conversion to HMO acceptable • max 25% of PP on refurbishment • must be habitable • refinance option • part c/i - interest only 3 / 5 year option • for experienced clients with funds • 6 months for works • previous projects • evidence of material income To find out more contact the sales desk on 01277751111
- 5. Residential Refurbishment Property – Case Study Large Victorian style 4 bed - into 7 bed HMO. Experienced ! PP £220,000 when done £350,000 agreed @ 75% LTV to purchase On completion, 75% of final value = £262,500 Spend £25,000 – client released £17500 for next project
- 6. Short Term Loans: Experienced Property Professionals looking to buy quickly Client looking to buy at auction or refinance or remove development finance - 0.25%* RBD. Key benefit – auctions or quick purchases • known exit strategy • refinance available • 0 - 18 month term • no redemption fees • experienced client • maximum ltv 70% • paid or retained • interest on full loan • residential / mixed • commercial • rates from 0.65% • switch to term loan To find out more contact the stl team on 01277751103
- 7. Short Term Loans – Case Study Refinance of 11 new build self contained apartments – Value £1.15M Loan of £750,000 agreed @ 65% LTV to refinance existing bridging @ 1.25% per month plus some capital raising 18 month Interest Only @ 0.65% per month - No exit or repayment penalty mission paid to introducer = £5,625
- 8. Short Term Refurbishment : Experienced Property Professionals with a track record of refurbishment Client looking for light or heavy refurbishment, looking to flip 0.25%* RBD. Key benefit – could borrow against uplift • up to 70% of MV • 0 - 18 month term • no redemption fees • should have funds • additional security* • paid or retained • can flip to term • known exit strategy • light 15% spend • heavy no max • rates 0.73% - 0.89% • prioritised valuation To find out more contact the stl team on 01277751103
- 9. Light Refurbishment Loan – Case Study Purchase of a property @ £129,500- £20,000 to be spent on works from applicants own funds Valuation upon completion expected @ £180,000 (confirmed at valuation) Loan of £90,650 (70% of LTV) agreed 12 month term Interest Only @ 0.73% per month – no exit penalty also transfer to ltl @ 70% of when done value. ommission paid to introducer = £679
- 10. Light Refurbishment Loan – Case Study Purchase of a property @ £129,500- £20,000 to be spent on works from applicants own funds Valuation upon completion expected @ £180,000 (confirmed at valuation) Loan of £90,650 (70% of LTV) agreed 12 month term Interest Only @ 0.73% per month – no exit penalty also transfer to ltl @ 70% of when done value. ommission paid to introducer = £679
Editor's Notes
- Benefit – although 2.5% fee – reduces costs and allows certainty of funds – 6 months to complete the works. 1 – People who can prove experience (12 month minimum) in the field in which they want to borrow in and can show a good track record of previous exposure to the type of project they are undertaking 2 - 3 year credit search will be taken and all associated addresses found will also be searched 2 – Individual people minimum age 21 maximum age 80 at the end of the term – Succession planning 3 – Can be a SPV – we will require most recent financial accounts 4 – Business model that shows retention of property and consistent approach can allow funds to be drawn on increased value 5 – No structural changes 6 – No change of use – unless converting to a hmo 7 money released after a re inspection and the property is confirmed as tennanted 8 valuer to comment on schedule of work at outset and confirm spend is reasonable.
- We have been in business since 1944 and became a licensed bank in 1971. The Special Opportunities Fund managed by RBS Equity Finance bought the bank in January 2011, and provided substantial capital to help the business grow. (13% ) In 2011 we bought additional lending businesses, and we changed our name to Shawbrook in October 2011. Our commercial mortgage product was built using the award winning team and infrastructure of Commercial First, which we acquired at the end of February 2011. In August 2011 we added a range of innovative secured loans, following the purchase of Link Loans. In March 2012 Singers Asset Finance became part of Shawbrook, bringing an established corporate asset finance business and medical equipment leasing provider to the Shawbrook offering.
- 1 – People who can prove experience (12 month minimum) in the field in which they want to borrow in and can show a good track record of previous exposure to the type of project they are undertaking 2 - 3 year credit search will be taken and all associated addresses found will also be searched 2 – Individual people minimum age 21 maximum age 80 at the end of the term – Succession planning 3 – Can be a SPV – we will require most recent financial accounts 4 – 5 –
- We have been in business since 1944 and became a licensed bank in 1971. The Special Opportunities Fund managed by RBS Equity Finance bought the bank in January 2011, and provided substantial capital to help the business grow. (13% ) In 2011 we bought additional lending businesses, and we changed our name to Shawbrook in October 2011. Our commercial mortgage product was built using the award winning team and infrastructure of Commercial First, which we acquired at the end of February 2011. In August 2011 we added a range of innovative secured loans, following the purchase of Link Loans. In March 2012 Singers Asset Finance became part of Shawbrook, bringing an established corporate asset finance business and medical equipment leasing provider to the Shawbrook offering.
- 1 – People who can prove experience (12 month minimum) in the field in which they want to borrow in and can show a good track record of previous exposure to the type of project they are undertaking 2 - 3 year credit search will be taken and all associated addresses found will also be searched 2 – Individual people minimum age 21 maximum age 80 at the end of the term – Succession planning 3 – Can be a SPV – we will require most recent financial accounts 4 – 5 –
- We have been in business since 1944 and became a licensed bank in 1971. The Special Opportunities Fund managed by RBS Equity Finance bought the bank in January 2011, and provided substantial capital to help the business grow. (13% ) In 2011 we bought additional lending businesses, and we changed our name to Shawbrook in October 2011. Our commercial mortgage product was built using the award winning team and infrastructure of Commercial First, which we acquired at the end of February 2011. In August 2011 we added a range of innovative secured loans, following the purchase of Link Loans. In March 2012 Singers Asset Finance became part of Shawbrook, bringing an established corporate asset finance business and medical equipment leasing provider to the Shawbrook offering.