Bridging loan for 75 year old retiree to fund buy to let property refurbishment

The Scenario:

Our client was a 75-year-old retiree in Newcastle who was planning to purchase a residential property for £195k with the intention to rent it out to provide an additional income to supplement his pension. 

The property needed heavy refurbishment, including front and rear extensions and a new kitchen and bathroom. This, combined with the retiree’s age, meant he was unable to get a mortgage. He already had his plans approved in principal but did not have full planning permission. 

Once complete, the property was projected to be worth £250k with a monthly rental income of £1,100.

Our client had £160k in savings and a total pension income of £16k a year. He needed to raise £85k to have enough money to complete the purchase and carry out the required refurbishment works. 

Our Solution: 

He approached Clifton Private Finance and we quickly found him a solution. We arranged a bridging loan for the full £85k with a specialist lender at an attractive rate of interest. This gave our client the money he needed to complete the purchase and carry out the required building work. 

The bridging loan had a loan term of 9 months, giving the client plenty of time to finish the refurbishment. We also arranged for a buy to let (BTL) mortgage with a different lender to be put into place once the refurbishment was complete, allowing the client to repay the bridging loan. 

The BTL mortgage was offered at low rate of interest, meaning the rental income on the property will be enough to cover the mortgage repayments and provide a monthly income for the client.

In a similar situation? Call our bridging loan team on 0117 959 5094 or use our bridging loan calculator to get an indicative quote