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Bridge Loan to Purchase – and Fix up – London Property

Bridge Loan to Purchase – and Fix up – London Property

£375K
A substantial refurbishment property can be a bargain – but securing funding can be tricky; that’s where bridging comes in

The Scenario

Our property developer client had the opportunity to buy a property in need of substantial refurbishment, carry out the improvement works, and sell it on for a healthy profit.

But he didn’t have enough capital to fund the total purchase cost, and the building works. They approached a bank for finance but were turned down.

The Solution

We took the case to a specialist lender we have a strong working relationship with.

Definitions for refurbishment lending can vary from one institution to another.

This lender initially classed the remedial works as a heavy refurbishment, but with some persuasion from us about the interpretation of their criteria, they were prepared to re-classify the work as a light refurbishment.

Lending for light refurbishment is charged at a lower rate (reflecting the lower risk to a lender).

We were able to quickly raise £262,000 to contribute towards the purchase of the property, plus 100% of the projected refurbishment costs of £88,000.

Our client was able to complete the purchase and get the works underway.

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