United Trust Bank Bridging provided an £850,000 unregulated bridging loan to help experienced property investors acquire a dated residential property at auction before carrying out a programme of refurbishment.
The borrowers, who already owned several other investment properties, identified the house as an excellent value-add opportunity. They planned to spend around £34,000 modernising the property, carrying out much of the refurbishment work themselves to keep the costs down.
Having already paid the 10% auction deposit and fees, their broker approached UTB for a 12-month bridging facility to fund the remainder of the purchase price needed to complete within 28 days.
The loan was secured against both the newly acquired project property and an unencumbered London buy-to-let property, together providing sufficient security to structure the loan at an LTV of 73.5%. An AVM was used for the BTL property, and the unmodernised purchase property required a physical valuation which was instructed and completed quickly.
Working closely with the dual representing lawyers, UTB was ready to release the funds as required. The borrowers expect the property’s value to increase substantially once modernised, at which point they will sell it, exit the bridge and bank a healthy profit.
| Borrower | Property Investors |
| Loan Purpose | Unregulated bridging loan to acquire a dated residential property at auction before refurbishing |
| Amount | £850,000 |
| Loan Type | Unregulated Bridging Loan |
| LTV | 73.5% combined LTV |
| Features | AVM and physical valuation Dual legal representation |