Often, borrowers wanting to buy-to-let are frustrated by long-term lenders’ requirements. Using our bridging loans, they can complete purchases quickly, install tenants, and refinance at leisure.
Our bridging loans mean investors can buy derelict, unmortgageable properties, which they can refurbish before letting and securing long-term finance. Property values invariably increase once work is complete, so investors can maximise the amount of long-term funding available. This often means investors can reclaim their original capital investment, and use it to buy another property. Please note, many long-term lenders require you to own a property for at least six months before they will lend. The example below, demonstrates how a bridging facility can assist in this instance.
A bridging facility of £214,000 was made available to assist with the purchase of a two storey, end of terrace Victorian house located in London E7. The valuer described the property as completely un-modernised, and in need of total refurbishment and reconfiguration. Roof coverings, windows and rainwater goods were all in need of replacement. The applicant acquired the property for £330,000 and our loan equated to 65% of this figure and 61% of the valuer’s £350,000 90 day market value. The borrower intended to extend to the rear and into the loft of the property and refurbish throughout. The valuer estimated an end value of £600,000 – £700,000 upon completion of the works, at which time the applicant would sell or refinance the property with a longer term lender. Interest was charged at 0.99% per month and works for the refurbishment were provided by the borrower.