- 23rd February 2022
- Posted by: DMM
- Category: Bridge Finance
Our client required a refurbishment bridge loan to purchase a commercial property and achieve a change of use from commercial to a residential home. This change was achieved via Permitted Development enablings the creation of large property with a good number of rooms spanning more than 3,000sqft of accommodation.
Harrogate is renowned as an historic spa town in North Yorkshire and a thriving tourist destination. This was a great opportunity to secure a investment property and a refurbishment bridge enabled acquisition and a facility to get the property ready to let.
The developer has more than ten years property development experience which have included other such refurbishment and conversion projects. In securing this property the developer knew that he could add value as well as having a great rental income into the future within his portfolio.
Developer Money Market looked across the market for lenders whom provide refurbishment bridge / development funding in Yorkshire and were able to present the client with different options.
In this instance the offer accepted was a gross loan of around £700,000 over a term of 9 months with the lender taking first charge security. The terms were based on a GDV of £1 million giving a loan of 70% loan to value which is strong for a commercial asset.
Bridge funding is a means to raise funding quickly and can give you an edge in acquiring a new opportunity. Typical examples of refurbishment bridge funding in Yorkshire might be for auction purchases or buying sites without planning
There are typically two main types of refurbishment bridge loans which are classed as ‘light’ refurbishment and ‘heavy’ refurbishment. The volume of post-acquisition works will determine how the lender will class the facility and, therefore, their rates. A light refurbishment will probably involve only redecoration or perhaps replacement of fittings, whereas a heavy refurbishment might require an extension or other structural work.
Bridge loans of up to 80% loan to value are possible with rates for lower leverage starting from around 0.50% per month.
Specialists in Refurbishment Bridge Funding in Yorkshire
If you are seeking refurbishment bridge funding in Yorkshire, then contact us today to discuss your requirements. Developer Money Market is a specialist in property development and bridge funding. We have a panel of more than 120 lenders together providing over 320 loan products.