Bridging Loan Case Study – Fast Completion & Refurbishment Funding

A client approached us requiring urgent finance to acquire and refurbish a residential investment property with the intention of reselling the asset within 12 months.

The purchase price was agreed at £375,000, and due to the competitive nature of the bidding, the client had agreed to complete within just two weeks, which secured the deal given the vendor evidently wanted cash quickly.

The property was habitable but needed a thorough facelift including a new kitchen and bathroom, to maximise value.

After assessing the case specifics and considering the most appropriate funding options, we recommended a Bridging loan product which provided:

• 75% Loan-to-Value (LTV) net, for the purchase.
• A £50,000 refurbishment facility made available in tranches.
• A Desktop valuation approach, to save on time (and costs).
• Dual Representation, given the client’s solicitor did not have availability.

One of the key challenges on this transaction was the extremely tight completion deadline. A full internal valuation report would not have been achievable within the required timeframe and risked delaying the purchase. To overcome this issue, our solution utilised a Desktop Valuation and Dual Representation legals.

This approach enabled:

• No valuation delays.
• Confidence in the conveyancing/ legals being undertaken swiftly.
• No waiting for 3^rd party professionals.
• Completion within the client’s required timeframe.

The client is now progressing with the refurbishment works and anticipates selling the property within 12 months at a strong profit margin.

This case highlights the importance of:

• speed and lender relationships in Bridging Finance,
• knowing which lenders can deliver within short timeframes,
• and structuring finance around realistic exit strategies and project timelines.