listed building purchase, OX15
We were approached by a client who frequently targeted investment properties in a rundown state, before making the necessary renovations and selling them on at a decent profit. In this instance, the client needed to raise £306,000 to purchase a Grade II listed building. The contracts had already been exchanged, so she was looking for a very quick turnaround on funds.
MT Finance solution
The valuation report came in slightly lower than initially indicated by £25,000 but we were able to revise our offer immediately and in just 7 days provided the client with a £306,000 first charge bridging loan, based on 65% LTV of the open market value. Interest was retained at 0.89% over an 18-month period.
We managed to save the client from losing the investment purchase. What’s more, the 18-month term will give her plenty time to apply for planning permission and complete the heavy refurbishment works on the property before selling on at a higher market value, thus generating a profit. Should the client manage to “flip” the property before the 18-month period- she will not have to pay any penalty charges or exit fees.