Refurb and Prosper
Bringing an investment property back to life is a great opportunity. But arranging the finance to purchase a property and fund the renovation works can be challenging as many mainstream lenders are still adverse to refurbishment lending.
We were recently approached by a borrower who targets buy-to-let properties, buying them in a run-down state and getting planning permission to add additional rooms before doing them up and putting them on the rental market.
His latest project focused on an investment property in London with a value of £330,000.
He wanted to buy, refurbish and then rent it but was unable to get a buy-to-let mortgage as it was uninhabitable.
We provided a £214,500 bridging loan within a week, at 65% LTV, over a 12 month period with no exit fee or early redemption penalty.
The bridging loan gave him the funds to buy the property and bought him the time needed to carry out the works in order to significantly increase the rental value of the property. The borrower will then refinance out of the bridge with a traditional buy-to-let mortgage from a bank, against the higher value.
Bridging finance is enabling investors the freedom to do what they need to do to properties more than ever before, providing a solution when high street banks are unable to lend the amounts required in the necessary time frame.
If you have an enquiry you wish to discuss, give us a call on 0203 693 0429 to see how MTF could help.