UTB’s bridging finance team was approached by an experienced property investor/developer who was seeking to buy two houses at auction. Both properties were in poor condition with one being unmortgageable. The borrower intended to buy both properties through their limited company, remodel and refurbish them and sell them on for a profit once improvement works were complete. No planning permissions were required, and the borrower had successfully completed similar projects.
UTB was able to use the borrower’s unencumbered home together with the two purchased properties as security for the £366,000 loan which provided 100% of the purchase funds and works costs. The schedule of works and costs provided, together with the post-works value of the refurbished properties, was supported by UTB’s valuer.
With the works estimated to take 4 months, the 12-month bridging loan term gave the borrower ample time to complete the projects and achieve the sales required to repay the loan and earn a tidy profit.
|Borrower||Property investor/developer through their Limited Company|
|Loan Type||Bridging Finance|
|Project type||Auction purchase of two houses to refurbish and sell|
|Special Features||– 100% funding of purchase costs and works|
– Properties in poor condition, with 1 unmortgageable