
Bridging loan and exit onto mortgage for Staffordshire farmhouse renovation
Our clients had found a Cinderella project: a Grade II-listed traditional Staffordshire farmhouse with land and outbuildings. But… it had been standing vacant for a number of years, with the lead stolen from its roofs, and its copper plumbing stripped out. For finance, it was an interesting challenge.
The Scenario
Our clients could buy the property at a £50K discount on the £450K asking price if they could get finance set up reasonably quickly. They came to us looking for a mortgage.
There were a few lenders who might have taken this on as a mortgage proposition, but considering the state of the property, the rates would have been woundingly high.
When we reviewed the options we were able to show our clients that a bridging loan refinanced onto a mortgage would work out cheaper – even with set-up fees and costs.
The Solution
1 The bridge finance
We were looking for 75% LTV of the asking-price valuation, which would allow them to pay for the purchase, the cost of the works and the cost of the interest payments.
We took their case to a lender who provides bridging finance for both light and heavy residential refurbishment bridges (so if the project didn’t qualify as light, we wouldn’t need to go for another valuation with a different lender for heavy refurb finance).
We needed to push a bit to persuade the lender the works met their criteria for a light refurbishment (roofing works, new kitchen, plumbing…). The difference saved our clients 0.25% a month.
Bridging was arranged for a nine month term, with no exit fees, so they had sufficient time to do the work but could get off bridging rates ASAP.
2 The mortgage finance
When it came to setting up the mortgage as exit from the bridge, our clients had purchased an adjacent parcel of land and wanted to split the title. One title would have the farmhouse and the new land. The other title, with one of the barns and a strip of land, could be sold off.
We needed to find a mortgage lender who was prepared to consider a change of title, and whose valuation would be of the future configuration, not the present land division.
The lender we proposed is quite flexible and provides a free valuation. They also offer two alternatives for legal costs: either free legal services provided, or a £500 cashback towards the client’s legal fees.
We recommended the cashback deal and instructing a specialist solicitor who could handle the exit from the bridging loan and splitting the title.
We got them the 10-year fixed rate they wanted for a competitive 2.69%.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
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George Abouzolof
Finance Broker
Bristol
0117 403 3444
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I have extensive experience securing UK mortgages for expat clients. Book a free telephone consultation with me at a time to suit you
Bridging Team
Clifton Private Finance
Bristol
0117 959 5094
Are you in need of a similar type of property finance?
Book a free telephone consultation with one of our bridging specialists today and see how we can help you.
Sam Baker
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you
Fergus Allen
Finance Broker
Cardiff
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
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Jacob Phipps
Finance Broker
Bristol
(+44) 0117 959 5094
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I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you
Jack Spillane
Finance Broker
Bristol
0117 959 5094
Mathew Phillips
Senior Finance Broker
Bristol
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Alex Chambers
Senior Finance Broker
Bristol
0117 403 4324
Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.
Book a telephone consultation at a time that suits you:
Luther Yeates
Senior Finance Broker
Bristol
0117 244 5561
Are you looking for a similar type of property finance?
I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar?
I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you
Robert Gibb
Senior Finance Broker
Bristol
0117 959 5094
Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.
Book ConsultationAdam Arnott
Associate Director
Bristol
0117 205 0214