Bridging loan to buy a second rental property

Area
Slough
Capital Raised
£50K

Every property portfolio starts with a first investment, which - if leveraged intelligently - can provide the finance for further purchases. 

The Scenario

Our London business-partner clients chose as their first investment property a fully-fitted apartment in a new office block conversion in Slough, valued very affordably at £200K.

They bought it unencumbered, with the proceeds of a company sale.

Three years later they were planning to buy their second buy-to-let, in Ealing for £320K. It was another office-conversion apartment being sold off-plan, and they wanted to raise £50K against the current £220K valuation of their first flat, to pay the second (final) instalment on this purchase.

The Solution

We needed to work within the developer’s strict deadlines: second payment was required within 15 working days.

We were looking at lenders who would offer the most favourable rates on a 75% LTV, and who also offered a drive-by valuation, which saves time and fees.

The bridge finance was arranged at a good rate of 0.95%, with the agreed exit a buy to let (BTL) mortgage arranged on the original flat, and the funds in our clients’ account within the 15 days.

They’re also planning to refinance this second property on a BTL.

This is a modest loan amount, which many brokers wouldn’t be able to consider handling, but we view this as a partnership with a growing investment portfolio.

Mathew Phillips

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.

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.

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. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

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.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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