Norwich Bridging Loan for an Auction Purchase to Convert to an HMO
- Product Type: Bridging Finance with refurbishment facility
- Location: Central Norwich
- Loan amount: £213,000
- Term/LTGDV: Term was 12 months and LTGDV 70%
The Scenario - Landlord Requires Bridging Loan for an Auction Purchase of a Commercial Property
Our client successfully won a bid at auction of £375k and needed to complete the purchase within 28 days. The property had previously been used as a guest house but had change of use to convert back to residential in the form of an
HMO.
The client is a portfolio landlord who was looking to diversify and was looking to complete the project swiftly.
The Challenge
Auctions Move Fast - due to it being an auction purchase, there was limited time to arrange the funding. Due to the complexities of the refurbishment, there were some challenges with obtaining accurate pricing for the works to be carried out, therefore the ‘refurbishment facility’ with the lender was required to provide additional security for the client.
Our Solution - Bridging Finance for Refurbishment
We proceeded with
bridging finance at 70% net LTGDV to minimise the clients cash input into the project and enabled him to keep more funds back for refurbishment. The client is retaining the property within his portfolio and we also began investigating exit solutions whilst the works were being carried out. The project was completed in 4 months with the exit secured for the client.
