Checklist

HOW TO SPEED UP YOUR HEAVY REFURB APPLICATIONS

Providing the right information when submitting a heavy refurb application can significantly reduce the amount of time it takes to complete. Here, we’ve provided a handy checklist of key information you may need to provide to ensure your client’s heavy refurb application goes through as quickly and smoothly as possible.

… Evidence of who is completing the works

An explanation or evidence as to who is completing the works is vital.

If there is a JCT or fixed-price contract in place, then a copy needs to be provided. If not, then a copy of invoices for sub-contractors should be sent. Alternatively, if the works are being carried out by the client, then the lender needs an overview of their previous experience.

… Schedule of works

As well as listing the proposed works, it also needs to include costings and timescales.

… Copies of relevant documentation

This includes planning permission, building regulations, or warranty documents. Having these in place at the beginning of an application can really help.

… Any additional sources of funds

If the lender isn’t funding the full cost of the works, then an explanation will need to be provided as to how the client has financed the works to date.

If there is a shortfall, then evidence of how this will be met will also be needed.

… Confirmation of the exit route

Not only does a lender need to know how the bridging loan will be repaid, but they also need to know whether the exit is dependent on the works being completed. If so, evidence should be provided that the works are achievable within the proposed timeframe.

For MT Finance, the above information is certainly useful and, in some instances, vital—but this will be reviewed by an underwriter who will gauge the relevancy of each requirement.