Bridge Loan to Purchase – and Fix up – London Property
- Twickenham
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.
jamescaldwell
Bridging loan calculator
Your Borrowing
Loan Required
Property value to be used as security*
Do you have any current charges on the property(s)?*
*Such as an outstanding mortgage or current bridging loanOutstanding charges /mortgages amount
Last Step - Get a bespoke quote
Your Borrowing
Loan Required
Property(s) Value*
Do you have any current charges on the property(s)?*
*Such as an outstanding mortgage or current bridging loanOutstanding charges /mortgages amount
Your Loan Quote
Loan Required
£50,000
12 MonthsMonthly Interest Rate
£40,000
£40,000
£40,000
Loan Term
12 Month(s)
Your LTV
72%
Your Loan Costs
Valuation fee:
£690
Solicitor fee:
£1,440
Lender facility fee @ 2%:
£1,029.42
Admin fees:
£155
Our Arrangement Fee:
£495
Total Loan Cost:
Yes
Yes