First charge bridge for client refurbishing property ready for sale

What was the situation?

LDN Finance was approached by an experienced property investor, who had previously completed some refurbishment projects. They approached us having purchased a property the previous year with the intention of refurbishing and selling the property.,

The property, located in Wales, was in a good condition but just needed a loan of £50,000 as quickly as possible so that the final works could be completed and the property listed on the market. Once sold, it was anticipated that the project would make the client a decent return on their investment.

What was the issue?

Because the loan was required on a first charge basis, £50,000 is less than most lenders would consider. In addition, there was an issue of an old CCJ that was raised a few years and although satisfied, was not attractive to some lenders.

What was the process?

To find a solution, we approached lenders within our network and found one that was willing to lend the funds required based on a value provided by an automated valuation model (AVM). This was a speedy solution, and provided a value that would support the funds required. Additionally, the legal requirements could be carried out in-house so the process could be concluded in a timely manner.

Before proceeding, I confirmed with my contacts at the lender that using the AVM was acceptable and following their agreement, was able to push this through to completion.

What was the solution?

The final loan offered by the lender was a first charge bridge with a minimum term of 1 month for the full amount required, allowing the client to finish the works, market the property and pay back the loan at the earliest opportunity.

The client was delighted at the outcome as they were able to complete the project successfully.

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