Fast bridge delivered to secure sale of desirable investment property

Facility

£86,619

Loan Term

12 months

LTV

66%

Situation

In this scenario, the client was looking to purchase a two-bed semi-detached property in South Wales. The seller was already in a chain , meaning they were looking to sell the property as soon as possible. As our client was also aware that there were other interested parties for this property, they were eager to secure funds within just 3 weeks so they could proceed with the purchase and the chain remain intact.

 

The dwelling was an ideal investment having a large garden and lots of inside space, however light refurbishment works were needed to bring it to the market for sale at a higher value. In that regard, while we provide bridging loan solutions for clients who are looking to undertake refurbishment projects, in this case, the client was in position to use their own funds to complete the necessary improvements.

Solution

As the client was looking to receive the loan funds for the acquisition as soon as possible to complete the purchase, they recognised a bridging loan would be the best option. In most cases, this type of finance option can be delivered extremely quickly, sometimes within a matter of days.

 

With properties often being snapped from the market almost instantly, this is one of many reasons why investors and developers choose to take out a bridging loan.

 

Specifically, the client required a relatively small loan of £86,619, which Hope Capital provided to meet their tight deadline. This enabled the borrower to purchase the property and then arrange for it to undergo the light refurbishment works needed.

Result

It was agreed the client would repay their finance obligations to us in 12 months, however owing to the sale, light refurbishment works, as well as other elements progressing swiftly, they were able to exit onto a buy-to-let (BTL) mortgage 3 months before their contractual redemption date.

 

It is often the case that a borrower’s exit route will be to refinance onto a traditional BTL mortgage once the property is in a position to become available on the market. Therefore, it is useful for investors and developers to know that a bridging loan can initially be secured to provide an immediate funding solution and then a BTL mortgage can be used to repay the bridging loan.

Roz -Head New

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