Refurbishment Bridge gives 80% Loan to Value NET!

Deal Structure

80% LTV NET towards the purchase, and based on Open Market Value

Interest Rate 0.79% pcm, rolled up

1% Arrangement Fee, added to the loan

No Additional Broker Fees

£1.1m loan amount

18 months term

Deal Summary

We were approached by a seasoned Property Developer/ Investor who had been presented with an opportunity to acquire a property local to him. It was a probate purchase, and as such our customer felt he was buying at a really good price. An opportunity not to be missed. However, most of his liquid funds were tied up in another project which wouldn’t be concluded prior to the purchase of this next opportunity, so we were tasked to provide the option which gave the highest net loan amount towards the purchase, and of course with the best interest rate/ fee package.

The customer was expecting some cash to come in imminently which meant he would be able to demonstrate he had the funds to carry out the works. As a backstop, if indeed those funds didn’t materialise in time, the lender could provide the Cost of Works in tranches and in arrears.

We facilitated a market-leading Refurbishment Bridge at a rate of 0.79% per month with interest rolling up, which provided a NET Day 1 loan of 80% of the property purchase price. This came with a 1% Arrangement Fee (NO additional broker fees!) and no Exit Fees, and on an 18 months term.

The plan was to fully modernise the “tired” property and then refinance the Bridge on to a Buy to Let.

The customer only had to cover the initial valuation fee which was very reasonably priced, and the legal fee undertaking once the valuation report was approved. All told, a very competitive package for an experienced borrower with a clean credit history, with a refinance as the Exit Strategy to the Bridging Loan.

Contact John Waddicker

07974 703375

[email protected]