Our client was a property investor that was actively looking to purchase another property to add to his portfolio.
They sourced a property that was within close proximity to another Buy To Let property they already owned, this property was a probate sale, and our client managed to negotiate a slightly below market value purchase price.
The property was located in Salford, Manchester and required a full refurbishment as it was in a dated condition and had been empty for around 12 to 18 months.
Our borrower required a bridging loan for the initial purchase of the property, he had already approached buy-to-let lenders however due to the extensive refurbishment works required (stripping out and replacing the kitchen and bathroom) this was not the right option for them at this stage.
We lent the client 80% of the market value, meaning we could provide a net loan as close to their purchase price as possible to allow the client to maximise personal funds for the refurbishment works that needed to be carried out.
Our borrower took a 7 month term to allow him to finalise all works and then refinance the property to a long term product. The refurbishment took longer than they thought but they still managed to exit the loan in a timely manner via a buy to let mortgage product.
The clients increased the value by 30%.