Octane Capital revamps refurbishment criteria

As part of the changes, Octane has increased the level of works permitted from 50% up to 100%+ of the current market value for heavy refurbishment projects.

The 'product-less' lender has also increased both the maximum LTV on day one and the maximum loan to gross development value up to 75%.

Octane recently lowered rates on its larger bridging, developer exit and refurbishment loans by up to 2% per annum following its annual Risk Review.

Mark Posniak, managing director of 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.”