Bridging Loan To Renovate Buy To Let Property In Liverpool

Clients often approach us for short term finance to renovate and improve buy-to-let properties either to increase the rent they can charge or to sell for profit. Changes in BTL taxation have meant that many landlords are refurbishing existing properties to sell on, and we've been seeing a lot of renovation activity in Liverpool..

The Scenario

Our client had bought a buy to let property in Formby, Liverpool on an interest-only mortgage that was coming up for full repayment. The clock was ticking: he needed to repay the mortgage and also wanted to access some additional funding for structural and cosmetic improvements which would make the house more appealing to residential buyers.

The Solution

The application process for renovation finance is relatively straightforward as lenders are less concerned about an applicant's income, being more focused on the exit strategy. Read more about renovation finance here. 

We were able to source a 12-month finance solution with a bridging loan lender who was comfortable with the exit strategy even though the property was not immediately being marketed for sale. We arranged for this to be a condition of the offer to allow for funds to be released to pay off the existing mortgage before the work was completed.

Refurbishment finance allowed the client to knock through the living area, making an open-plan space which was much more appealing for residential buyers and could command a higher price.