Situation: First Time Landlord purchase, refurb and refinance.
A customer came to us looking to purchase a property on a reduced value, carry out some light refurbishment and then refinance to a buy to let mortgage once the property had achieved the enhanced value.
The property was being purchased for £100,000, customer was looking to spend around £10,000 to replace the kitchen, bathroom and decorations throughout and refinance using the post-refurbishment value of £135,000.
Solution offered by Crystal Bridging Loans:
Given the fact that there were two layers of financing needs involved, we sourced a lender that offered 75% towards purchase price. Given level of works being light refurbishment and the approximate time to complete the works, the same lender offered to refinance 75% of £135,000 once works had been completed. This gave the customer a total capital of £101,250. This in essence meant reimbursing the customer funds spent on refurb and allowing them to move onto the next project.