
Finish and exit on a London residential renovation
Some owner-builders and small-scale developers are hesitant about bridging finance. This is a prime example of when it’s a flexible - and affordable - way of injecting funding into a building project that still has a fair way to go.
The Scenario
The call came through at a weekend: a couple had bought their classic London terrace in Shepherd’s Bush 15 years ago for a now-unbelievable £290K. (A leasehold maisonette – the lower flat was separately owned.)
They were mortgage-free, and had saved £150K to get a major renovation underway: a loft extension and side extension that re-mapped the footprint of the building.
They were pretty much at bare walls stage: no kitchen or bathroom, no boiler or proper living space. They just needed another £150K to finish off their project.
The Solution
They approached another firm of brokers at the same time they came to us.
We looked at their architectural plans, their schedule of works and builder’s report and said: "You won’t get a mortgage at this stage, but we can set up bridging finance for you."
The other brokers told them they could get mortgage finance – so of course the clients went with them.
Three and a half weeks later, they’d paid for a valuation which gave the prospective lender a Nil valuation for a mortgage. The property was categorically classed as "uninhabitable" in its current state, and their application was refused.
The client had lost valuable time spending their own cash reserves to keep the project afloat - plus the cost of the valuation.
Back to us, and we knew that the regulated bridging lender we work with (who is able to offer finance on homeowner projects) wouldn’t be focused on mortgageability. They’d be looking at the value of the site and the bricks and mortar, the amount of money that had been spent on the project, and its future value.
Their valuer put a value of £650K on the property in its current state, with a projected GDV of £900K.
We double-checked that they’d accept this as now being a light refurbishment rather than a heavy refurbishment: a difference of 0.2% per month on the rate. They would. (On larger borrowing this would be a really significant saving.)
Finance arranged at 0.55% over 12 months, with just a 2% arrangement fee, and no exit fee: the clients expect to be finished in six months, and we’re setting up their exit onto a residential mortgage.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
Are you looking for a similar type of property finance?
Get in touch today and find out how I can help.
George Abouzolof
Finance Broker
Bristol
0117 403 3444
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for expat clients. Book a free telephone consultation with me at a time to suit you
Bridging Team
Clifton Private Finance
Bristol
0117 959 5094
Are you in need of a similar type of property finance?
Book a free telephone consultation with one of our bridging specialists today and see how we can help you.
Sam Baker
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you
Fergus Allen
Finance Broker
Cardiff
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Jacob Phipps
Finance Broker
Bristol
(+44) 0117 959 5094
Are you looking for a similar type of property finance?
I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you
Jack Spillane
Finance Broker
Bristol
0117 959 5094
Mathew Phillips
Senior Finance Broker
Bristol
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Alex Chambers
Senior Finance Broker
Bristol
0117 403 4324
Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.
Book a telephone consultation at a time that suits you:
Luther Yeates
Senior Finance Broker
Bristol
0117 244 5561
Are you looking for a similar type of property finance?
I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar?
I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you
Robert Gibb
Senior Finance Broker
Bristol
0117 959 5094
Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.
Book ConsultationAdam Arnott
Associate Director
Bristol
0117 205 0214