By Lee Merrifield, Associate Director of Underwriting at MSP Capital.
MSP Capital is a specialist bridging and development lender that was founded over 40 years ago in 1981. In that time, one thing has become very clear: there’s enormous potential in renovating older properties. In today’s property market, renovating is not just an option; it’s an opportunity.
As the region grapples with the ever-present housing crisis and an uncertain economic outlook, we believe that refurbishing residential properties can be a game-changer.
Rather than solely committing to ground-up developments, the key lies in unlocking the potential hidden within existing structures.
The Current UK Property Market and Renovation Opportunities
The property market in the UK has had its fair share of ups and downs in recent times. From uncertainty around interest rates and housing prices to the challenges posed by economic fluctuations, developers have had to navigate a turbulent market. Here’s where choosing renovation over new-build could potentially help increase stability for developers.
In periods of market volatility, it’s often riskier to invest in new builds, which require significant capital and long timelines. Renovations, however, can be quicker to market and often need a smaller initial investment.
By focusing on refurbishment, developers can pivot more easily in response to market changes, ensuring a better chance of a profitable exit. In a changing landscape, refurbishment loans offer not just financial support but a form of risk mitigation.
What are refurbishment loans?
A refurbishment loan is capital you borrow to renovate, convert or improve an existing property. It’s different from a ground-up development loan because it is designed specifically for the costs tied up in fixing and improving a building that is already built. They are usually categorised as either light or heavy refurbishment loans, depending on the level of work that needs to be completed.
How MSP Capital Can Help
At MSP Capital, we’re not just lenders; we’re your partners in property development. Our decades of experience make us uniquely suited to understand your needs and offer the right solutions.
We have a range of funding solutions that are designed to help you at every stage of your project – including heavy and light refurbishment loans. Our team is always on hand to provide expert advice, and we genuinely enjoy seeing developers turn older properties into modern masterpieces.
So if you’re looking to breathe new life into an older property, consider a renovation loan. With the right support, these projects can be both rewarding and profitable.
Ready to unlock the potential of your next project? Get in touch now or visit mspcapital.co.uk for more information on our funding solutions.
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