Your refurb, Your rules


Adam Butler Avamore Capital

In the last 18 months with many challenges arising for ground up developments we have seen many move to refurbishment and conversion opportunities.

These can range from simple internal reconfigurations to large commercial to residential conversions.

These opportunities can offer less chance of rising build costs, cost overruns and a quicker return on investment with less delays on site.

In a world known as the “Bridging and Development” space, many people are unaware that some lenders offer a specific product for these types of opportunities and often assume they can only obtain a bridge for light refurbishments or development loans for heavier schemes.

Bridging schemes where works are required can mean the clients eat into their own cashflow to cover the build costs and development loans can often have a higher cost.

Many lenders actually offer a specific product for these opportunities which can be perfectly placed between both a bridge and development loan.

Most can offer the leverage, cost and speed of a bridge but also covering the costs associated with the works.

A perfect hybrid product for many refurbishments or conversions.

The difficult part for many brokers and clients is the minefield of criteria often associated with these products. What is light, what is heavy. Structural or non-structural.

What each lender will and won’t do is vastly different.

Another area where most lenders differ is how they fund the works.

Generally, there are two options, one as a higher LTV bridging loan which can save costs as they don’t require an MS or the other with day one funds towards the purchase or refinance and then the build costs funded as drawdowns which can sometimes provide a higher loan overall although does require a higher cash injection from the client.

With Avamore’s enhancement to its Refurbishment product, you don’t need to worry about which lender to call.

Avamore can now fund the works upfront, in drawdowns or even at PC which like the 85% LTV bridge requires no MS and will save on interest.

Moreover, Avamore have no restrictions on the amount of build costs or SqFt expansion so can truly fund the full range of refurbishment and conversion opportunities.

Loans start from £250,000, offered at rates from 7% + BBR for 85%, with terms of up to 24 months.