Bridging Loan for Property Purchase & Renovation
See how we helped a property developer to purchase and refurbish a property in Tyne and Wear.
Funding a purchase & Refurbishment
An investor client approached us seeking a bridging loan to purchase and refurbish a property in Tyne and Wear.
The property was valued at £39,999 and required significant refurbishment, including new electrics, plumbing, plastering, a new kitchen and bathroom, redecoration, and new flooring.
The estimated cost of the works was £25,000.
To support the client’s investment, we secured a gross loan offer of £52,999. This covered 70% of the purchase price and 100% of the refurbishment costs, ensuring the client had the necessary funds to complete the project.
Following the refurbishment, the property’s expected value is £100,000, significantly increasing its worth.
The client plans to refinance onto a Buy-to-Let mortgage, with a projected rental income of £550 per month providing a solid basis for the new financing structure.
The introducer has already arranged assistance with the refinancing process to ensure a smooth transition.
Overview of Case Study
- Product: Refurbishment Bridging Loan
- Gross Loan Amount: £52,999
- Property Purchase Price: £39,999
- Loan Coverage: 70% of purchase price + 100% of refurbishment costs
- Exit Strategy: Buy-to-Let refinance with a projected rental income of £550 per month
Ref no – CS21
