An experienced Developer wished to purchase a three bedroom semi-detached property on the outskirts of Essex. The property was in need of refurbishment throughout. To add further value, the Developer planned to extend the property within the existing development rights. This would create a larger kitchen and dining space.
The property was valued at £550,000. The Developer had a deposit and £60,000 cash to put towards the renovation. To purchase the property and complete the work he required a loan of £380,000. The exit strategy would be through the sale of the property.
The Developer contacted Ingard’s Mortgage and Protection Adviser’s to discuss the best available options. As bridging finance can be complex, an Adviser who specialises in this field, handled the case from start to finish. By presenting the Developer’s previous experience to several bridging lenders with a strong appetite for refurbishment loans; the Adviser successfully secured competitive terms.
Within just two weeks, all paperwork, legal work and valuation had been completed, and the funds had been transferred to the Developer’s account. Seven months later the Developer had finished all work to the property and secured a buyer. Post-works the property was valued at £800,000. The bridging loan was repaid through the sale of the property with no early repayment charges.
For more information on short-term loans for refurbishments, or any other legal purpose, call our Mortgage and Protection Advisers on 01702 533 400 or arrange a callback.
This case study is for illustrative purposes only.