Purchase and Refurbishment of Three Properties with One Bridging Loan
The Client: An experienced portfolio landlord with seven buy to let properties, looking to make further investments.
The Properties: Our client was looking to purchase three mid-terrace properties on the same road. Already converted into multi-units consisting of three, one or two-bedroom flats, our client was looking to make further changes and add an additional flat to each. Located in the centre of a North West city, they benefitted from excellent local amenities and transport links.
The Finance: Using readily available savings as a deposit, our client needed a 76% LTV (Gross) loan to purchase the properties. With lots of interest in the multi-units, our client was keen to secure the purchase as quickly as possible.
The Challenge: As the properties were all on the same road, we knew trying to secure the purchases through buy to let mortgages wouldn’t be as fast as we needed. We decided with the client that we could use a single bridging loan to secure the purchase of all three properties. In order to transition smoothly to a buy to let exit, our client was keen to secure the bridging finance from a lender that could also offer competitive buy to let mortgage rates to exit onto. Although the properties being on the same road was not an issue for the bridging finance, we knew it could complicate the future buy to let mortgage applications. Some lenders would consider this too much exposure and, therefore, a high-risk application.
The Solution: Drawing on our extensive bridge to let experience, we were able to identify a few lenders that would likely consider the case. After approaching a couple to talk through the details and impress the short time frame we were working with, we submitted the application with a well-known lender. Crucially, they would also be able to facilitate the buy to let mortgages when the refurbishments works were complete, and it was time to refinance. Here are the bridging finance details: