Bridging loan for landlords to purchase and develop ex-LHA house

We were approached by a married couple from Wales who are experienced landlords / property developers, although they also run a successful water irrigation business.

Between them they jointly own a portfolio of more than 10 properties, all of which are located close to their home.

They were looking for bridging finance to assist with the purchase and renovation of a former council house, again, located close to their home.

Knowing the area well, they felt that when the property was finished, it would sell for around £120k, making them a good profit.

We approached a lender that works with experienced developers and is currently offering extremely competitive rates.

The lender was happy to offer the following deal, which progressed swiftly without a hitch:

Property value: £85,000

Loan amount: £59,500

LTV: 70%

Rate: 0.75% pcm

Term: 6 months interest only

Lender facility fee: 2% (£1,190)

Lender exit fee: 2% (£1,190)

Monthly payment: £442 pcm

Consultant: Gavin Elley

21st December 2015