Refurbishment loan at 75% Loan to Value (net) with a Desktop valuation.

Deal Structure

75% Loan to Value on Day 1 for the acquisition, based on the OMV (not the 180 Day value!).

£239k Loan.

2% Arrangement Fee.

Interest at 0.95% per month, paid monthly.

No Exit Fees.

12 months term.

Deal Summary

Our investor client had agreed to buy another property to add to his portfolio in Suffolk. Being a well -known property investor in the area, he had agreed an “off market” purchase with a vendor who had approached him to see if he was interested in a “quick” purchase.

The property was in relatively good condition, and only required re-decoration throughout with some very light remedial works here & there. Whilst the lender offered to include the cost of works in the facility, the client decided to cover the costs himself, given they were only anticipated to amount to circa £25k.

The lender offered 75% LTV with a Desktop valuation at a cost of £250 and taking 24 hours, with the client providing some pictures and a video “walk-through” of the property.

The client opted to pay interest monthly from his existing portfolio income, so the net loan was at 73% LTV (before legal costs).

The lender was able to utilise title insurance and whilst they also offered Dual Representation, the clients’ solicitor was extremely efficient so Dual Rep was not needed. The lender did not require a legal fee undertaking to be paid, with the legal fees being deducted from the gross loan amount at completion.

The loan took 2 weeks to complete and the client is delighted with his purchase. Once the property is tidied & re-decorated, the client intends to refinance to a Buy to Let, for longer-term investment.

Contact  John Waddicker

07974 703375

[email protected]