If you need to ensure finance for your development project to refurbish a property, it is essential to assess its future value. Can refurbishment significantly increase the rental income from the commercial property? You should be sure about the answer, covering every technical and economic detail. Moreover, it should carry a high resale price. There should be market demand to rent the commercial space. As a developer, you should be confident about a few factors to refurbish a property to pitch to a financial institute to supply funds.

Current structural conditions

There should be no laxity in assessing the current structural conditions of the property you want to refurbish. Check its load-bearing walls, slabs, and other structural attributes. There should be no hidden structural risks in the property. When you are clear about these conditions, you are a step ahead in applying for commercial property finance.

The property’s age

It is mandatory to be aware of the property’s age before you apply for commercial property loans in South Africa. In some cases, the age determines whether the property qualifies for refurbishment. Many systems in the property may be outdated. You should understand these aspects before applying for a loan. A property that is less aged is easier to refurbish. It makes your pitch stronger to the financiers.

Focusing on legalities

Another aspect that you can’t overlook is the legal status of the property. There should be no legal complications associated with the property that you want to refurbish. Lenders with expertise in Commercial Development Finance expect that there are no issues with property ownership. There should be no disputes associated with the property. This improves your loan eligibility. Also, there are no delays in disbursement.

Compliance

This is one of the most significant factors that you should consider. You can never skip compliance requirements in a property refurbishment plan. The property should comply with the local building codes. Your refurbishment plan should align with the safety codes and fire norms within a regulatory framework. There is never a compromise with these things when you apply for commercial property loans in South Africa.

Resource: https://tuhfproperty.substack.com/p/factors-that-you-should-consider