- Product Type: Bridging Finance
- Location: Cromer
- Loan amount: £329K
- Term/LTGDV: 12 months and 45% LTGDV
The Scenario - Bridging for Auction Purchase with Holiday Let Plans
Our client successfully won a bid at auction for a property in Cromer that required refurbishment. To meet the auction's tight completion deadlines, they needed a bridging loan. The client's plan was to complete the necessary refurbishment and then retain the property as a holiday let.The Challenge – Maximizing the Loan and Unusual Exit Strategy
The client faced two main challenges: 1. They required the maximum possible loan amount on day one, which we facilitated by having the client service the monthly interest on the loan. 2. Since the client planned to repay the loan by remortgaging onto a holiday let mortgage, we needed to demonstrate to the bridging finance underwriters that this exit strategy was viable. Convincing the underwriter proved difficult due to the different assessment criteria used by holiday let lenders compared to typical residential or buy-to-let products.Our Solution - Demonstrating a Viable Exit through Market Research
We conducted thorough research into the holiday let market and worked closely with the client to obtain accurate rental projections for the property once refurbished. By presenting this data and explaining the favourable rental assessment criteria used by the holiday let lender, we were able to convince the underwriter of the viability of the exit strategy. The client successfully secured the bridging finance and proceeded with their plans to refurbish and retain the property as a holiday let.Testimonial
Service from Adam was 5*
I dealt with Adam for the mortgage of our property to get from a Bridging loan onto a holiday let mortgage and he was absolutely fantastic! Due to the pressure of the timescale we were working on with the Bridging loan, I was quite anxious to ensure that everything was progressing and Adam called me when he said he would, responded to queries quickly and was just all round really good!
Date of experience: 01 November 2024 - Trust Pilot ReviewFind out More about Bridging Finance Loans
