Japanese knotweed discovered, CF41
Our client was looking to raise funds to purchase two investment properties. She planned to refurbish both the assets and sell at a higher value. However, due to Japanese knotweed growing on both sites the client’s BTL lender refused to proceed due to the risk of structural damage to the properties.
MT Finance solution
The client’s broker contacted us straight away and we agreed to proceed with the case if the client could provide a plan and guarantee of treatment.
A specialist contractor was immediately brought in to guarantee the removal of the Japanese knotweed and get started with the treatment plan. With this in place, we were able to provide the client a £64,000 1st charge bridging loan. Interest was retained at 0.89% over 12 months, based on an open market value of 65% LTV. There were no exit fees or early repayment charges.
By taking out our bridging loan and having the Japanese knotweed treatment plan in place, the client purchased both investment assets. What’s more, the 12-month term will give her the time to complete the refurbishment works before putting both assets on the market at a higher value, making a profit as well as paying back the bridging loan.