An experienced landlord needed funding to complete a five-flat conversion. With lenders hesitant to support mid-project developments, MFB identified a flexible solution and secured bridging finance, unlocking the property’s full investment potential.
At a glance:
- Experienced landlord with existing buy to let portfolio
- Converting a large Victorian house into five high-spec flats
- Bridging finance required to complete ongoing works
The Case:
Our client, an experienced landlord with multiple buy to let properties, approached us for support in completing a conversion project. Having already transformed two units within a large Victorian house, they were looking to finish the remaining three flats to complete the multi-unit freehold Block.
With two flats completed, the property was valued at £370,000. However, once the conversion was finished, the gross development value (GDV) would be £500,000. The client needed a bridging loan to fund the final stages of the refurbishment.
The Challenge:
The key challenge was sourcing finance mid-way through a refurbishment project. Many lenders are cautious about lending when work has already commenced, and several options were ruled out due to strict criteria.
Our client wasn’t just looking for the lowest rate; she needed a lender who could act quickly, understand the nature of the project, and offer a smooth, stress-free process.
We identified a lender with a proven track record of supporting mid-project bridging cases. The flexible criteria and experience with similar developments made it a strong fit. We also secured the bridging loan with retained interest, meaning our client didn’t have to make any monthly repayments during the loan term.
Drawing on our extensive experience with property conversion projects, we prioritised speed and reliability over headline rates, ensuring our client could complete the refurbishment on time.
Once completed, we’ll source suitable buy to let finance for the properties so our client can repay the short-term loan and start making a profit from the properties.
The Finance:
Property value: £370,000
Gross development value (GDV): £500,000
Loan amount: £148,403
LTV: 54%
Term: 12 months
Bridging interest rate: 0.84% per calendar month*
Retained interest charge: £15,983 (rolled-up interest, repaid on settlement)
Arrangement fee: 2% (£2,968)
*Rates as at May 2025 and subject to change.
Next steps
Looking for a bridging loan? Get in touch with our team to see how we can help.
