The property was built in 1910 and was noted as “significantly dated throughout”.
Repairs and general maintenance had been neglected for several years and a substantial amount of work was required to modernise the property — which included damp, external joinery repairs, potential ceiling asbestos, leak damage and an old boiler.
Upgrades were also required to address a poor EPC rating.
Based on the potential of the property once converted into a high-yielding HMO and the customer’s previous experience on similar projects, the loan was agreed on a nine-month term at 75% LTV.
Shawbrook was able to add the arrangement fee on top of the max LTV, rather than deduct from the gross loan, resulting in a higher net loan amount for the client.
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The client secured the funds required to complete the purchase quickly and undertake the heavy refurbishment needed to transform the property.
The borrower has also obtained the exit route — a term mortgage — enabling him to recover his deposit and the refurbishment funds spent, with the value increasing by almost 40% from the purchase price.
The case was introduced to Shawbrook by brokerage Go Finance.
Gavin Seaholme, head of sales property at Shawbrook, said: “Working with expert broker partners and delivering a good customer journey and outcome are key to providing bridging solutions.
“At Shawbrook, we have an award-winning product offering with products that are aligned to our customers’ needs.”
Neil Moorhouse, managing director at Go Finance, commented: “The process with Shawbrook from quotation to completion is extremely straightforward with market leading pricing, which enables Go Finance to offer best-in-market products.
“Shawbrook are an extremely helpful bank on all levels and offer great support to the intermediary marketplace."
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