In June 2018 we assisted clients with bridging finance to purchase a terraced house in Huddersfield for £270k. Their plans were to convert it to 4 apartments. Although they had previously undertaken light refurbishments of some BTL properies, this was a much more significant project. Conversion works costing c.£80k were fully funded by the client and progressed well.
The clients wished to raise as much finance as possible on completion to roll forward into a new project. After works were completed, the 4 flats were all quickly let and the valuation came in at the figure expected of £500k.
Our lender provided a net loan of £410k (gross £420k including fees) – a gross LTV of 84%. This is a 10 year, interest only loan, fixed at 5.29% for 5 years.