The three products: light refurbishment, cosmetic improvement, and EPC improvement, offer the chance to release refurbishment costs upon completion without having to change the product. 

While light refurbishment and cosmetic improvement are designed to increase the future asset/rental value of the property, EPC improvement — a green mortgage option — is targeted to enhance the property’s energy efficiency.

The range is available to individuals and limited companies and is applicable on standard BTL properties and small HMOs and MUFBs. 

With five-year fixed rates starting at 4.41% and going up to 4.95%, lending for the selection will be calculated on the pre-works value, with a holding based upon the post-works estimated valuation. 

The product range has a maximum 75% LTV (pre and post works, which means landlords can release more if the value of the property has increased), and the maximum cost of work must not exceed 25% of the pre-enhancement value.

CHL can provide loan sizes from £25,001 to £1m.

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For all offerings, the refurbishment must be finished within three months of completion of the initial advance, and landlords must give an in-depth schedule of the proposed tasks while applying. 

Examples of light refurbishment include rewiring, replacement roof coverings, kitchen, bathroom, door and window installations, and hot water and heating systems.  

The cosmetic improvement product — an option for properties that need aesthetically-focused works and repairs — includes general painting, plastering and decorating, and installation of replacement floor coverings. 

Minor improvement jobs, like replacing internal doors and updating fixtures and fittings, are also part of this. 

Ross Turrell, commercial director at CHL Mortgages (pictured above) commented: “This product range has been designed and developed in line with feedback received from our intermediary partners and a growing number of their landlord clients who are looking for a product which offers a single, one-stop solution which removes uncertainty around funding refurbishment supported by a simple process.

“This alternative green mortgage product is more than a simple pricing play and provides an additional and viable option to alternative forms of finance such as bridging and refurb-in-term solutions, while helping to reduce administrative burdens and save on multiple inspection and legal fees.”