Short-term finance for landlord purchasing and refurbishing neglected property

The client is a full-time civil servant who was looking to purchase a 3-bed terraced property in the Midlands. The property had been vacant for over a year and needed a full refurbishment before it could be let.

The client has a property portfolio of six buy to lets and experience in smaller refurbishment projects. He needed finance to purchase the property but had the funds to carry out the renovations.

We approached a semi-exclusive lender with well-priced rate with no exit fees.

The client accepted a 12-month term even though the project should only take half that time. This means that he will be protected if the project suffers any setbacks.

Here are the details of the deal:

Property value: £105,000

Loan amount: £78,750

LTV: 75%

Rate: 0.95% pcm

Term: 12 months

Lender arrangement fee: 1.95% (£1,535)

Lender exit fee: Nil

Borrower: Individual

Loan payment: £763 pcm

Rental income: Once completed refurbishment £650 pcm

Consultant: Chris Longhurst, 01732 471607

This is just one example of how we have helped secure short-term finance for a client, if you have a similar scenario or something you'd like us to look at please get in contact with us on 0345 345 6788.

 

 ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Consultant