Bridging Finance to Purchase and Refurbish Dream Home
The Client: Living in rental accommodation, our client wanted to purchase their dream family home. He also owned one buy to let property in the background to supplement his income.
The Property: Originally a four-bedroom detached family home, the current owner had converted it into two self-contained flats. Situated in a town centre in Scotland, the property was close to plenty of local amenities and schools.
The Finance: In order to refurbish the property back to one unit and make it their home, our client needed bridging finance to cover the purchase and costs of the work.
The Challenge: Due to the scale of work required on the property, lenders classified it as heavy refurbishment, meaning many were hesitant. The issue we found was either that the lender didn't offer on properties in Scotland, or they weren't happy to offer on cases with heavy refurbishment, meaning we were left with very few choices for our client.
The Solution: After extensive research, we managed to find one lender that was happy to lend to our client due to their experience as a landlord. We also provided a clear exit strategy from the bridging finance, moving to a residential mortgage once the works are completed. Despite the rate being slightly higher than the average bridging product, our client was happy to accept based on the opportunity to improve the property's value and make it their home.
See the property details below: