A client had an initial enquiry to purchase a fire damaged property at auction. The client was looking to purchase the property for £67,000 and carry out £20,000 of restoration work to bring the property back to the original condition when it was built in 2014.
At the time, the client had enough cash available to restore the property therefore, needed to raise additional funds for the purchase, auction and legal fees.
The client had purchased and extended his council property 4 years ago with a first charge mortgage of £44,000 and current value of £185,000 but was still within the Council’s pre-emption period.
We obtained a postponement of the council’s restriction and sourced a lender who could provide a “Bridging Loan” against that property allowing the client to raise £82,000 which was used to purchase the auction property and cover the fees.
The rate secured for the bridging loan was 0.95% per month with rolled up interest over a 12 month period, this meant the interest was added to the loan each month without the client requiring to make payments while restoring the property.
The clients intention is to let the property once complete and re-mortgage to 75% of the finished property value estimated at £115,000 that will clear the bridge.
To find out more and speak with our Bridging Finance Experts, call us on 0800 0350095 or use Contact Us form and we will get back to you straight away