Gross Loan Amount:
£150,000
Property Value:
£1,200,000
LTV:
53%
Initial Circumstance
One of our regular brokers came to us when their client needed additional funds for the re-purposing of a property.
The client had nearly completed the project which involved transforming a house into 5 flats to increase rental yield potential. However, they ran into some unexpected costs towards the end..
MFS Solution
We stepped in, as the client was under time pressure to ensure that they didn’t lose income from the property. With all the details of the case in front of us, were able to say yes to the requirement.
This included taking a second charge on the property, which the incumbent lender agreed to.
The Benefits
The client was able to borrow the amount needed to complete the works on their property. This was done quickly, and the borrower is able to still move tenants in on schedule, ensuring they do not lose any rental income.
Further reading:
- Featured Product: Permitted & Light Development Bridging Loans
- Tool: Bridging Loan Calculator
- Guide: A Guide to conversion, refurbishment and renovation
- Blog: How much will you spend on property renovation costs and is it possible to lower the bill?
- Blog: How to buy a derelict property and bring it back to life
