Only weeks after ‘product-less’ lender, Octane Capital, announced it was lowering rates on its larger bridging, developer exit and refurbishment loans by as much as 2% per annum following its annual risk review, it has now reconstructed its entire refurbishment proposition.
With immediate effect, Octane will increase the level of works permitted from 50% up to 100%+ of the current market value of a property for heavy refurbishment projects. This will give landlords considerably more firepower to manufacture value from their portfolios to maintain a strong margin and reinvent them in order to keep pace with increasingly popular PRS developments.
Due to the improved market outlook, the #3rdGen lender has also increased both the Maximum LTV (Day One) and Maximum LTGDV (Loan to Gross Development Value) up to 75%, providing landlords and property investors with the flexibility and financial firepower to achieve their goals and stay competitive.
Mark Posniak, managing director, Octane Capital, 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 PRS. The result is a surge in demand for refurbs 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.”