£366k bridging loan to acquire two refurbishment opportunities at auction

UTB’s bridging finance team was approached by an experienced property investor/developer who was seeking to buy two houses at auction. Both properties were in poor condition with one being unmortgageable. The borrower intended to buy both properties through their limited company, remodel and refurbish them and sell them on for a profit once improvement works were complete. No planning permissions were required, and the borrower had successfully completed similar projects.

UTB was able to use the borrower’s unencumbered home together with the two purchased properties as security for the £366,000 loan which provided 100% of the purchase funds and works costs. The schedule of works and costs provided, together with the post-works value of the refurbished properties, was supported by UTB’s valuer.

With the works estimated to take 4 months, the 12-month bridging loan term gave the borrower ample time to complete the projects and achieve the sales required to repay the loan and earn a tidy profit.

BorrowerProperty investor/developer through their limited Company
Amount£366,000
Loan TypeBridging Finance
Term12 months
LocationNorth West
LTC59%
Project typeAuction purchase of two houses to refurbish and sell
Special Features– 100% funding of purchase costs and works

– Properties in poor condition, with 1 unmortgageable