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Discover how one customer achieved £40,000 net equity growth in just 8 weeks

Roger


Roger Morris - Director of Sales

Published 15.01.2019

I’ve been overwhelmed by the reaction to the launch of our new Refurbishment Buy to Let offering. In all my years working in the industry, I’ve never seen so many brokers get so excited about something.

The combination of quick access to short-term finance to facilitate the purchase and refurbishment of a property bought, for example, at auction and the peace of mind of an exit onto a long-term mortgage is proving really popular.

If you don’t believe me, here’s an example of how we recently helped a customer achieve net equity growth of nearly £40,000 on a property in just 8 weeks.

  1. Customer wanted to buy a property which needed renovation before letting it out.
  2. They borrowed £180,000 at 75% LTV to purchase the property at auction for £240,000.
  3. The bridge element completed in just 9 working days.
  4. Customer spent £20,000 renovating the property.
  5. The after-works revaluation came back at more than £300,000.
  6. Customer exited onto a long-term buy to let mortgage. Time taken from initial DIP to completion was just 8 weeks (and it would have been even quicker if it hadn’t fallen over the Christmas and New Year period)

We all know that property investors have traditionally faced difficulties in securing finance to refurbish a property before letting it out, due to the cost of installing a new boiler or double glazing for example. According to recent research there are more than 200,000 vacant properties in the UK1, many of which are empty and unlettable as they don’t meet the minimum EPC ‘E’ rating which came into force in April 2018.

With so many opportunities out there, our Refurbishment Buy to Let could offer landlords a new way to boost their profits. It’s suitable for a wide range of landlords, including personal, limited company and HMO applicants, and no mortgage repayments are required whilst any refurbishment works are being completed.

Find out more by clicking here.

Source: 1https://www.theguardian.com/world/2018/sep/25/england-has-more-than-200000-empty-homes-how-to-revive-them


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