Search
Bridging finance to fund heavy terrace refurbishment

Bridging finance to fund heavy terrace refurbishment

28.05.19 | Written by: Glenn Franklin-Jones

The clients: Business partners of a recently created SPV limited company. They had completed one refurbishment project together, and recently formed a business developing and selling on properties. They both additionally worked within the construction industry.

The property: A 4-bed mid terraced property in Nottinghamshire in need of some TLC. The clients planned to fully renovate the whole property including a new kitchen, new bathroom and loft conversion to create a 5th bedroom. As the property was very close to the town centre and surrounded by local shops and schools, the clients could see its great potential.

The finance: To complete their purchase the clients required a LTV of 63% and they chose to self-fund their development. With this being only their second purchase, the clients had limited experience, which restricted the number of lenders available to them.

The clients came to Mortgages for Business to gain access to specialist lenders and find a competitive rate. They expected the property to have a significant uplift in value after refurbishment and planned to sell on the house after development. We agreed that short term/bridging finance was their best option.

The application process: We approached a lender who we know takes a view on applicants on a case-by-case basis and who accepts clients with minimal experience. At 65% LTV of the current value the lender was happy to look at the case and with their industry contacts from their day to day construction work to support them then lender offered the full loan amount required.

Property value: £220,000

Loan amount: £138,000

Proposed GDV after development: £320,000

LTV: 63%

Rate: 0.74% pcm

Term: 12 months

Lender arrangement fee: £2,760

Lender exit fee: FREE – NO FEE

Monthly payment: Nil (rolled up with interest at end of loan term)

Consultant: Glenn Franklin-Jones, 01732 471673

 

Looking for short-term or development finance?

If YES, give Glenn a call directly on 01732 471673 or call the main desk 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.

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

Get in contact with us: 0345 345 6788 or ...

Submit an enquiry
Arrange a call back