Sanjiv came to us looking to purchase a property on a reduced value. He also wanted to carry out some light refurbishment and to then refinance to a buy-to-let mortgage once the property had achieved its enhanced value.
The property was being purchased for £100,000. Sanjiv was looking to spend around £10,000 to replace the kitchen, bathroom and decorations throughout to improve its value and liveability for his new tenants. He then wanted to refinance using the post-refurbishment value of £135,000.
Solution offered by Crystal Bridging Loans:
As there were two layers of financing needs involved, Sanjiv needed to source a lender that offered 75% towards the purchase price.
Given it was a light refurbishment and the approximate time to complete the works, we found a lender offering to refinance 75% of £135,000 once works had been completed.
This gave Sanjiv a total capital of £101,250. This was the equivalent to being reimbursed the funds spent on the refurb and allowing Sanjiv to get a head start on his next project.