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Case Study - Uninhabitable £725k Property Purchase

Case Study – Uninhabitable £725k Property Purchase

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Background

May 2018

Although experienced buy to let landlords with a couple of properties in their growing portfolio, when our clients spotted an attractive investment opportunity in central London, they became interested in the concept of Bridging Finance and knew they needed a specialist to deal with the complex nature of this particular deal. 

After a quick Google search, the couple came upon The Buy to Let Broker and enquired through to experienced advisor Matt Wright in the hope of purchasing a mid-terrace four-storey property with a view to convert it into four individual flats. Other properties in close proximity had already accomplished this, so there was clear demand in the market but this particular property came with a few complications to say the least.

Matt Wright

Buy to Let & Bridging Specialist
Matt Wright Buy to Let Specialist

If you are looking for expert advice, you can get in contact with Matt today by calling 08009499410 or by sending him a quick email

The Challenge

Sadly the Edwardian property had previously been used by squatters and had suffered extensive fire damage as a result. Added to this, traces of knotweed had been discovered on the grounds and threatened the clients’ chances of getting the finance they needed. 

Undeterred by complexity and with an eye for an opportunity, the clients were confident that all of these complications could be overcome with the right mortgage broker.

Here is where Matt’s advanced lender knowledge, specialist experience and industry relationships came into fruition and he quickly set out to source the right lender that would accept these conditions. 

But that wasn’t all. 

As a human-first mortgage specialist, we never recommend a Bridging Loan without securing a robust exit strategy as well. This avoids any nasty surprises for our clients further down the line. 

Having taken the time to understand the clients’ long term plan, Matt made sure that there would be not one but several lenders that would accept the property once the conversion had taken place.

Our Strategy

Having previously dealt with similar complex Bridging Finance before, Matt was well versed in dealing with applications of this calibre. 

Knowing that the clients wanted to move fast with the deal due to popular demand, Matt quickly identified Together as the correct lender that could offer the £543,750 finance that was needed. After discussing the clients’ case directly with senior managers within Together, the specialist lender agreed to the full finance on a 12-month interest only basis, thus giving the clients plenty of time to undertake the extensive refurbishment and deal with the known Japanese Knotweed issue. 

Being their first-ever Bridging Loan, Matt, along with case manager Chris, helped the clients with all of their queries, no matter how big and small. Furthermore, the team handled all of the necessary paperwork and admin for the clients who both held very busy and demanding full-time jobs, help we know that the clients very much appreciated.

The Buy to Let Broker Mortgage Specialists

The Results

Property Value£725,000
Loan Amount£543,786
LTV75%
Rate0.9%
TermFixed 12-months
Mortgage LenderTogether

Quick thinking and proactive in service, Matt was easily able to guide the clients through each step of the application and ensure they were successful in both purchasing the property as well as converting it into four not just habitable but attractive flats. 

Within a few months, the renovation work was completed, the leases were created and the freehold was moved to a separate subsidiary company to allow the clients to retain the leases in an SPV structure for maximum tax efficiency. 

So impressed with Matt’s help with the purchase of this property, the clients returned to use Matt’s expertise to refinance each of the four newly created flats. Being a highly respected brokerage with experience in all areas of property funding, we were not only able to find the best advice when it came to securing the  Bridging loan but also refinancing the property to individual Buy to Let finance on competitive rates.  The property will yield the clients a total refinance sum of over £1.7m, and with the additional funding created the clients are now looking to purchase further buy to let properties.

Now a loyal client of The Buy to Let Broker, Matt has also assisted with the purchase of their new residential home and the remortgage of another buy to let property within the clients’ portfolio. 

Proven Service For Portfolio Landlords Like You

The Buy to Let Broker Bridging Finance Team

Feefo Platinum Trusted Service Winner 2020 & 2021 ⭐️⭐️⭐️⭐️⭐️

No matter how complex your property requirements may seem to be, Matt and our full team of our mortgage advisors will be able to find the right solution for you. To get your finance problem solved now, call us today on 08009499410 If you are in a hurry, you can also request a callback by simply entering your details below.