Refurbishment Bridging loan from private lender with NO VALUATION and NO MONITORING

Our customer had only been developing properties since 2020 but in that short space of time had completed 5 light refurbishments projects in the South West of England. With a background of working for a major house builder, he decided to take a leap and work for himself on properties in his local area a few years ago and was already reaping the benefits.

He won the bidding at auction and had agreed a Purchase Price of £160,000 on a “tired” residential property which was in need of some significant works, including replacing the roof.

Due to the works required on the roof, the majority of the “Refurbishment” Bridging lenders wouldn’t treat the case as a “Light” refurbishment, which would mean the customer could not access the sharpest interest rates and would potentially have also incurred monitoring costs from the lenders asset manager or QS, if indeed he stuck with the finance options he had found himself on-line.

We were tasked with sourcing a private lender who didn’t automatically class the works as being too “heavy” and instead truly considered the borrowers extent of experience and track record to date, when determining how to price the loan.

In addition, whilst the customer had sufficient funds to cover the cost of works, they weren’t sure whether they would actually need further draw-downs given they had another property on the market which had a sale pending, and from which the net sales proceeds could be utilised on this next project.

Our chosen private lender went to the property and met with the customer, and was satisfied with what they saw, and came up with the following proposition:

No formal valuation required.

No 3rd party project monitoring. Further drawdowns available, if required.

62.5% LTV net on Day 1, towards the acquisition.

A further £50k to be made available in arrears, if required.

2% Arrangement Fee,

Interest at 0.72% pcm,

No Exit Fees,

No Valuation Fee,

No Monitoring Fees,

Legal Fees only £1,000 (inc VAT).

12 months term.

The loan completed 2 weeks after the site inspection, in time for the 28 day auction completion window.

Private lenders don’t have specific product “shapes” and can therefore create a boutique funding proposition case by case. We’d be delighted to open up such options for you, today.