FINANCE & INSURANCE
Renovation fi nance unlocked
Thomas McSherry at BuildStore explains how Light Renovation mortgages are helping buyers fi nance uninhabitable homes and unloc the potential of renovation and retrofi t.
B
uying a home that’s currently uninhabitable can be an opportunity, but it’s also where
many purchases fall down. When a property can’t be lived in at the point of sale, most high street lenders are unable to support the purchase, regardless of its potential. hat leaves buyers struggling to fi nd a way to fund both the purchase and the essential renovation needed to make the home habitable. Yet this challenge comes at a time when upgrading existing homes has never been more important. Across the UK, millions of properties require renovation or retrofi t simply to bring them back into safe, liveable use. The Government’s Warm Homes Plan, which commits £15bn to upgrading up to fi ve million homes by , underlines the growing need to improve what already exists.
Despite this focus, access to suitable
fi nance at the point of purchase remains one of the biggest barriers for buyers taking on uninhabitable homes.
WHEN STANDARD MORTGAGES DON’T FIT With limited options available, many buyers feel pushed towards bridging fi nance as the only way to move forward. While it can work in some situations, bridging is usually a short- term and expensive option, with the loan repayment typically required within months. his is unsuitable for many projects as the work will take longer than the loan term offered, which can add unnecessary pressure and uncertainty at an already demanding stage of the project.
A MORE FLEXIBLE OPTION Whether you already own your home or are buying a property to renovate, a Light Renovation mortgage is designed to provide a more suitable solution.
Instead of being limited by the
home’s current value, borrowing is based on the property’s value once the renovation is complete. This can allow borrowing of up to of the fi nished value, and in many cases can cover up to of the renovation costs. Funding is released through guaranteed stage payments, linked to the progress of the work. Crucially, funds can be released before each stage of the works begins, helping you pay builders and suppliers on time and maintain a positive cashfl ow throughout the project. This reduces reliance on savings or short-term borrowing and makes it easier to plan and manage your renovation
with confi dence.
WHAT TYPES OF PROJECTS ARE SUITABLE? Light Renovation mortgages are designed for work that improves, modernises and futureproofs a home. To qualify: • The property must be wind and watertight at the outset
• The build period should be no more than months
• The work must fall under permitted development or Building Regulations, rather than requiring full planning permission
Typical qualifying projects include: • Replacement windows and doors
25
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
