Case Study: Refurbishment Bridge Finance Positive Commercial Finance

Client: Experienced property investor
Deal Type: Refurbishment bridging loan with make-weight security

The Opportunity

Our client identified a strong refurbishment opportunity. The property was acquired for £250,000. They planned to invest a further £65,000 in a comprehensive refurbishment programme, targeting a Gross Development Value (GDV) of £450,000 upon completion.This represented a clear value-add project with a healthy gross margin of £135,000 before finance costs, fees and holding costs.

The Challenge

The client needed fast, flexible funding to complete the purchase and release funds for the refurbishment works. Traditional lenders were unsuitable due to the short-term nature of the deal and the requirement for stage-release funding.The client also owned a second property valued at £250,000 with an existing loan of only £50,000. They were happy to offer this as additional security, but most lenders struggled to structure the deal efficiently around the combined security package.

Our Solution at Positive Commercial Finance

We structured and placed a specialist refurbishment bridging loan that utilised:

• The subject property as primary security (with lending supported by the projected GDV of £450,000)
• The second property (valued at £250,000 with only £50,000 outstanding) as make-weight security

This creative security structure gave the lender the comfort they needed while allowing our client to maximise borrowing against the project.

Key deal parameters arranged:

• Loan facility to cover the full £250,000 purchase price plus the £65,000 refurbishment costs
• Staged drawdowns aligned with works being completed and certified
• Competitive bridging rate with interest rolled up where required
• 12-month term (with flexible exit options)
• Full security package accepted on both properties

The deal was packaged and submitted to a specialist short-term lender who had a strong appetite for well-structured refurbishment projects with additional security.

The Outcome

The bridging loan completed smoothly within a short timeframe, allowing our client to purchase the property quickly and commence works immediately.The refurbishment was completed on budget and on time. The property achieved the projected £450,000valuation.The client was then able to either:

• Sell the property and realise the profit, or
• Refinance onto a longer-term buy-to-let or commercial mortgage

Either route allowed full repayment of the bridging facility with a strong net profit remaining.

Why Positive Commercial Finance?

This transaction highlights exactly why clients choose us:

• We understood how to combine the primary property with make-weight security to make the deal work
• We matched the client with the right specialist lender rather than forcing the deal into a standard product
• We structured staged funding so the client wasn’t over-exposed during the works
• We delivered a fast, professional service from initial enquiry to completion

Gross project margin: £135,000
Finance arranged successfully with additional security utilised effectively

Would you like a similar refurbishment bridge structured for your next project?

Contact the team at Positive Commercial Finance today for a free, no-obligation discussion.

www.positivecommercialfinance.co.uk