An experienced landlord sought bridging finance to purchase and refurbish a property through his SPV. Discover how we secured our client a competitive loan with a clear exit onto a buy to let mortgage, enabling 75% LTV post-refurbishment, covering costs and leaving surplus funds for future investments.
At a glance:
- Experienced portfolio landlord looking to fund their refurbishment project
- Aiming to increase the value of the property with the intention of releasing equity
- Securing our client a bridging loan with a clear exit strategy post-refurbishment
The Case:
Our client, an experienced portfolio landlord, followed a strategy of purchasing properties through his SPV Limited Company, refurbishing them, and releasing equity post-works to cover costs and enable long-term letting.
After identifying a new investment opportunity, our client approached us seeking bridging finance to cover both the purchase and refurbishment costs. He had a 3-to 4-month schedule of work covering bathroom and kitchen refurbishments, general decorating, and minor non-structural layout changes.
The Challenge:
Bridging loans often come with higher rates, so our priority was to secure a competitive product that offered real value for our client. We also needed a clear exit strategy once the six-month term ended and refurbishments were complete.
Thanks to our experience with complex cases, we found a lender offering a competitive bridging rate and a seamless exit onto a buy to let mortgage product. They also agreed to lend up to 75% of the property's post-refurb value, covering the works and leaving surplus funds for future investments.
Having a clear exit strategy is key to peace of mind, and our lender relationships helped streamline the process, delivering a smooth and stress-free experience for our client.
The Finance:
Bridging Loan
Initial property value: £225,000.
Initial loan amount: £168,750.
Rate: 1.2%.
Term: 6 months interest-only.
Bridge monthly mortgage payment: £2,025.
Lender arrangement fee: Nil.
Remortgage
Property value: £260,000.
Loan amount: £195,000.
LTV: 75%
Term: 20 years
Rate: 5.79% fixed for 5 years
Monthly mortgage payment: £1,377.
Lender Arrangement fee: Nil.
*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.
