New 85% LTV bridging loan product

New 85% LTV bridging loan product

9:22 AM, 1st February 2024, About 3 months ago

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A Loan to Value of 85% is now possible with Lendinvest, including fees and 12-month roll-up interest of 1.09% per month.

Below is a recent case study for this product that also incurred a 2% lender fee and a valuation fee of £850.

Background – Experienced landlord with redevelopment experience and a fast team of people who can renovate quickly and at a good cost.

No walls are being moved, the place needs a refurbishment, but not structurally.

The property is a run-down HMO – still profitable, but needing some TLC, bought at auction for £595,000 with a cash deposit and 85% bridging finance. The property requires circa £40,000 for renovation. After renovation, higher-paying tenants can be found and a full commercial valuation can be carried out to show value has been added and increased.

The new value is estimated at £845,000 with an estimated income from a full 18-room HMO at approximately £115,000pa.

Once the refinance from the bridging loan has been completed the surplus comes back to the owner. The owner then recouped his initial capital expense, with the bonus of an HMO income.

Please also remember, that all mortgages, including short-term ones like bridges, are specific to every person. Not a blanket approach. Especially when it comes to refurbishment-type loans.

If this type of loan or any other would work for you to get moving with property development, please get in touch using the form below.

Contact Howard Reuben

Mortgages, Commercial and Bridging Finance, Life Insurance, Wills, Trusts and LPA's

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