14th February, 2024
Octopus Real Estate, part of Octopus Investments, and a leading specialist real estate lender and investor, has today announced a new option for landlords looking to improve the energy efficiency of their buy-to-let (BTL) property.
Enviro-let enhances Octopus Real Estate’s current BTL product. It provides the option to drawdown up to 5% LTV of additional borrowing, providing the borrower self-certifies that the funds will be used for improvement works listed within the recommendation section of their EPC certificate. This could involve installing cavity wall or loft insulation, replacing an old boiler with an air source heat pump, or upgrading to low-E double glazed windows.
This bolt-on is designed to be packaged and underwritten for simplicity and flexibility. The additional borrowing is underwritten during the initial application but can be drawn down at a later date, making it a useful contingency for landlords to get the most out of void periods. Works are expected to be completed within one month of drawdown or completion, and borrowers will be required to provide Octopus with a copy of the new EPC certificate ─ confirming a rating of C or above ─ within six months.
Octopus Real Estate’s BTL loan is available to brokers serving clients in England and Wales. It can be used for a range of purposes including refinancing or purchase of security, purchasing additional or deleveraging existing investment properties, or carrying out improvement works in an existing portfolio.
Alongside its refurbishment loan product, launched earlier this year, Octopus Real Estate now offers two products focused on improving the energy efficiency of the UK’s housing stock, demonstrating its commitment to providing landlords with simple and flexible options to improve their properties.
Steve Matthews, Head of Residential Lending, Octopus Real Estate, said:
“Octopus Real Estate is committed to helping provide quality, sustainable homes. Energy efficiency is a big part of this; it’s a key priority for tenants, providing them with lower energy bills and a more comfortable living environment. Enviro-let will support landlords to benefit from the ‘green premium’ involved with meeting this ever-growing demand, offering simple and flexible access to additional funding that helps increase their property’s EPC rating.”
For more information on Buy to Let applications please visit the Octopus Real Estate website www.octopus-realestate.com/buy-to-let/ or call 0800 294 6850.
