Ascot Bridging provides 100% net cost of works in £109,000 refurb loan

Ascot Bridging Finance has completed a £109,750 refurbishment bridging loan for a property in Lincolnshire.

The client required help to acquire the security property, which had an agreed sale price of £70,000 — this was below the average value of the area due to the property's condition internally. 

The proposal was to carry out a full internal rip-out and overhaul the property from top to bottom spending £50,000 on the works, in order to bring every aspect up to modern standards.

Although the original anticipated GDV came back lower than the client’s expectations, a same-day conference call with Ascot Bridging, the borrower, and the broker ensured that the matter was resolved and agreed the same day, which enabled the solicitors to complete that week.

The loan was secured against a GDV of £185,000, and was agreed on a 0.95% interest rate on a nine-month term.

The facility allowed the client to borrow 75% gross LTV for the purchase and 100% of the net cost of works.

Kevin Gibson, operations director at Ascot Bridging Finance, said: “We understand every property is unique, and that is why we review all refurbishment deals on their own merits, with bespoke underwriting.

“Far too often the focus on a property deal is cost of works vs market value of the property, and not the end GDV. 

“Many have self-imposed restrictions such as a maximum of 20% or 40% of the security value being spent on the works.”

Andy Gray, senior business development manager at Ascot Bridging Finance (pictured above), added: “We look for the value of a deal with bespoke underwriting and spending time to understand the vision that the client has, be it rental potential increase or taking profit from sale of the asset.”

Leave a comment