Non-Regulated Bridging Loancase study
A detached residential property became available via a local estate agent in a very desirable town in the South West. The property generated a significant amount of interest but our client was first to act and had an offer accepted within 24 hours of the property being marketed. However, the purchase price was £350,000 and he only had £150,000 cash plus his renovation budget. The property was in a major state of disrepair with all internal walls bowing, cracking throughout all rooms, no kitchen and therefore not in a habitable condition. A standard residential or BTL mortgage was, therefore, not an option.
Cornerstone were able to put forward a low rate, 12 month bridging deal. The monthly rate was 0.55% and there was a 1% arrangement fee with no exit fees or early repayment charges.
Time was of the essence due to the huge demand for the property. From our initial consultation to the drawdown of funds it took only 3 weeks and 3 days which included getting a valuation and Structural Engineer’s report completed. The property purchase went ahead, the work was carried out in 5 months and the bridge has now been repaid. The property valuation rose to £600,000 following £110,000 renovation spend, leaving the client with a potential profit of £140,000 (excluding finance and legal costs).