The specialist lender will increase the level of works permitted from 50% up to 100%-plus of the current market value of a property for heavy refurbishment projects.
Octane has also enlarged both the maximum LTV (day one) and maximum LTGDV up to 75%.
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The changes have been made to offer landlords and property investors flexibility and financial firepower to achieve their goals and stay competitive.
Mark Posniak, managing director at Octane Capital (pictured above), commented: “Revisiting our refurb range was a logical step given our renewed confidence in the outlook for UK property and the broader forces at play within the rental market.
“Refurbs are not just a way for landlords to manufacture value out of their portfolios to mitigate the impact of taxation changes but also to reinvent them to remain competitive alongside the growing threat that is [the] PRS.”
According to Mark, there has been a surge in demand for refurbishments across the board, from light and moderate to heavy.
“Our message to brokers is that as well as offering lower rates, we’ll now lend more and be even more flexible, and so should be their first port of call,” he added .
In January, the lender revealed it had lowered its rates on its larger bridging, developer exit and refurbishment loans by as much as 2% per annum, following its annual risk review.