CHL Mortgages launches light refurbishment BTL range

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The new range is aimed at landlords looking to carry out non-structural or modernisation works to maximise the rental yield and value of a property.

The specialist lender’s new range is aimed at investors wanting to make improvements such as installing a new bathroom or kitchen; replacing fixtures and fittings, windows and doors, and roof coverings; undertaking a full rewiring; and converting a C3 dwelling to a C4 HMO property.

The lender said the range offers an alternative way to fund the purchase and refurbishment of a property.

Rather than following the traditional two-step approach of taking out a bridging loan before securing a long-term buy-to-let product to exit onto once works are completed, borrowers can now opt for a single buy-to-let term mortgage solution, providing more certainty upfront and removing the need for two sets of legal fees.

The initial mortgage advance is based on the pre-works rental and market valuation figures, with a retention held based on the difference between the pre- and post-works values.

Once the borrower confirms the works are completed, a reinspection is instructed to confirm the actual post-works rental and market value figures.

Following receipt of the reinspection approval, the retention funds are released.

Two-year fixed rates start from 4.40% for single dwelling properties and 4.50% for HMO and MUFB properties with up to six bedrooms or units.

Meanwhile, five-year fixed rates start from 6.11% for single dwelling properties and 6.21% for HMO and MUFB properties with up to six bedrooms or units.

All products are open to individual and limited company landlords and are available up to 75% LTV with a choice of product fee options.

Mil Consiglio, head of sales at CHL Mortgages, said: “Our new light refurbishment range is all about giving landlords the freedom to unlock the potential in their properties.

“It offers them a simple way to add value through non-structural or modernisation upgrades before letting them out, and it’s ideal for investors looking to refresh tired stock or turn vacant or under-used properties into high-quality, income-producing homes.

“The beauty of light refurbishment is that it provides choice.

“Brokers now have an alternative option to present to their clients compared to the traditional approach of taking out a bridging loan and then securing a buy-to-let product once works are completed.”

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