New refurbishment move from Cheval

New refurbishment move from Cheval


A light refurbishment product has been launched by Cheval Property Finance plc that targets experienced property professionals looking to unlock value from residential property purchases.

Landlords or developers can obtain the lower of 70% of market value or purchase price on an unimproved property, and then secure up to 100% of the refurbishment costs. Most building work is permitted, with the exception of structural work requiring planning permission or building approval. The interest rate is 1.5% per month .

Mark Posniak, Director of Sales and Marketing at Cheval, said: "This is a fantastic product and currently one of the few of its type available. It enables refurbishment work to be carried out on a property to boost its value and then the customer can either sell the asset or refinance. For those purchasing a property with unrealised value this is an ideal product to unlock value."

The light refurbishment product is available for residential property that requires refurbishment expenditure of up to a maximum of 10% of the purchase price.

The refurbishment launch forms part of a range of product changes that the leading bridging lender announced this week.

The Cheval Closed Bridge product is being renamed to "Same Day Bridge" with legal fees reduced to £400 + VAT and disbursements. The leading 0.85% per month interest rate remains unchanged.
Maximum LTV on residential property is maintained at the lower of 70% of market value or 80% of purchase price. LTV on commercial moves to the lower of 60%.of the purchase price or the market value.

The interest rate for first charges remains at 1.45% per month..

A Cheval statement of assets and liabilities is now required for all loans. The new maximum LTV on new build is the lower of 60% of the market value or 80% of the purchase price. Cheval will no longer accept broker or customer valuations on discounted transactions.

There is a Cheval administration fee of 0.5% for all loans up to £750,000 and 1% on loans greater than £750,000.

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