heavy refurb for development completion, EN7
We were recently approached by a broker on behalf of their client regarding funding for a development project. The client had started to undertake work on a series of six terraced residential properties but was looking to secure further funds of £514,097 to complete the project. He had already started the loan process with another lender but was concerned with how long the loan was taking. Time was running out, so his broker contacted MT Finance.
MT Finance solution:
As it was imperative that current works could continue uninterrupted, we immediately flagged this as a high priority. The client was looking to leverage equity in one of his buy-to-let properties, valued at £900,000. The valuation report – which had already been compiled for the previous lender – was done by a valuer we regularly collaborate with, meaning we could accept a retype of the existing valuation, saving the client time and money.
Within eight working days of receiving the retype of the valuation, we released a first charge heavy refurb bridging loan at 57% LTV of the property’s open market value. Interest was retained at 0.75% per month over a 12-month term, with no exit fees or ERCs.
Our bridging loan ensured the client was able to continue with the property’s development without any interruptions – adding six rental properties to his portfolio once works are complete. The 12-month term will give him plenty of time to complete the works and once that’s finished, he will exit our loan by taking out a buy-to-let mortgage against the higher value of the properties. If this happens sooner than 12 months, he can redeem our loan without incurring any fees.