Completed. Revamped. Sold! Bridging loan secured to enable quick return on investment.
The client was looking for a bridging loan to help purchase a residential property based in Nottingham and to fund the improvements required to bring it to the market for sale.
Although the property required light refurbishment works in order to increase the value and attract future home buyers, the dwelling itself was very promising, in a good location with decent local amenities and transport links and an overall great investment opportunity.
Therefore, owing to the likelihood of the property being snapped up quickly, the client decided a bridging loan would be the most suitable option to help secure the sale in a timely manner.
Hope Capital provided an initial loan of £87,470 to enable the borrower to purchase the dwelling and then supplied a further £28,823, so the client could undertake the light refurbishment works required throughout the property to bring the home up to a desirable standard.
Altogether, we provided the borrower with a total loan facility of £116,293 at 70.4% LTV for a term of just six months.
The bridging loan provided the client with an ideal solution to secure the property and then undertake the necessary works, so the property could be transformed into a desirable home.
Once the works had been completed, the borrower put the property onto the market for a significantly higher price than what they had paid. As anticipated, the property sold quickly resulting in the client being able to settle the loan on time and make a tidy profit.
Typically, light refurbishment projects take a few months, which is why a bridging loan creates the perfect opportunity to achieve this. In addition, it is often the case as a borrower that finding a traditional long-term lender, who is willing to fund refurbishment projects is very challenging. This is why often investors and developers rely on bridging loans to fill the gap, before they sell or move onto a buy-to-let mortgage once all works have been completed.
Miriam is responsible for developing the overarching marketing strategy and implementing the strategy across all marketing channels. This will both expand and deepen the relationships with brokers and key partners within the industry.