Jonathan Sealy

Business

Opportunities in 2021

11 Mar 2021

Jonathan Sealy

by Jonathan Sealey

The specialist lending industry no doubt faced challenges in 2020, as a result of the Covid-19 pandemic and subsequent lockdown measures. That said, the bridging market has proven once again it is resilient and can react positively in unprecedented times.

 

While the future is still unclear as to what 2021 will look like for brokers and borrowers, to ensure the market keeps moving forward, Hope Capital has created opportunities for investors who are looking at refurbishment and development opportunities, to either improve their properties, increase yield or for capital gain.

 

As seen in 2020, we witnessed a sudden shift to remote working, which subsequently paved the way for a new type of opportunity for investors. Many employees are enjoying working from home and are considering working remotely as a permanent option. As a result, properties designed to meet this demand, are being snapped up, sometimes within hours of coming to the market. This demand is further exacerbated by the temporary removal of Stamp Duty until March, designed to stimulate the property market after the first lockdown in spring 2020.

 

Therefore, in 2021, purchasing a property at a lower price which can be renovated and transformed could be a very smart move for borrowers looking at new opportunities to start their investment plans this year.

 

Property refurbishment finance can be used for a wide range of project requirements, from light internal redecoration, through to large extensive projects or change of use projects and are ideal for those who do not have the additional funds needed, however are looking to improve the property and therefore add value.

"To ensure the market keeps moving forward, Hope Capital has created opportunities for investors who are looking at refurbishment and development opportunities, to either improve their properties, increase yield or for capital gain.."

Jonathan Sealey, CEO

As a result, Hope Capital started 2021 by launching the Refurbishment Range, a set of products specifically designed for borrowers undertaking property refurbishment projects. The three new products include Refresh, when a property requires relatively minor upgrades, Renew, a property needing moderate repairs, redecoration and refurbishment and Renovate, suitable for more extensive and advanced projects.

 

The Refurbishment Range provides LTVs up to 75% on non-regulated residential property. It also provides borrowers with the option of a fantastic rate, starting from just 0.69% for loans on residential properties up to £3m. Hope Capital’s range provides up to 100% funding, for a loan term between 6 – 18 months and is available throughout England and Wales.

 

The Refurbishment Range will further expand Hope Capital’s offering to brokers and borrowers, by providing numerous options to meet this market demand.

 

In addition, another trend we witnessed in 2020, is the surge in property acquisition via auction. This option has many benefits, including less competition compared with buying in the traditional way, as well as possibly having the opportunity to purchase at a reduced price. Properties purchased via auction will often meet the needs of investors who are looking at refurbishment projects and provides an additional route to available premises.

 

A bridging loan is a perfect solution to fund auction purchases which are required to complete in strict timescales and more so if the buyer does not have the capital upfront and therefore should definitely consider short-term finance as an option this year.

 

While it is difficult to predict what will happen in 2021, especially with the recent government announcement of the third national lockdown, there will always be investment opportunities for borrowers. The most important thing is to find a lender who will provide innovative solutions, support, and in a quick and efficient manner, which will help investors reach their ambitions in these challenging times.

Jonathan Sealy

Jonathan Sealey

Jonathan started Hope Capital in 2011 after working in property for over 9 years and is responsible for the company’s strategic growth.

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