HFBS provides £50,000 bridging loan for inherited property refurb

Holme Finance Bridging Solutions (HFBS) has completed a £50,000 bridging loan for the refurbishment of a semi-derelict inherited property.

The borrower, who had inherited the property, had the initial mortgage application refused as the property was in a semi-derelict state and therefore wasn’t habitable, and she couldn’t provide evidence of meeting monthly payments.

The benefactor had no intention of becoming a landlord and had no desire to live in the property, but couldn’t afford to maintain the house, so she required the finance to refurbish and sell it. 

In consultation with local estate agents, the client was advised that, with a limited amount of investment, it could achieve a sale price of £300,000 — £100,000 above its current valuation.

HFBS completed a full valuation, which confirmed that the property in its current state is worth £200,000. 

With a quote from the builders of £50,000 and confirmation of a four-week turnaround, the lender issued the bridging loan over a 12-month term at 1.45% per month. 

Dan Yendall-Collings, senior underwriter at HFBS, said: “It’s always really satisfying to be able to take what is seemingly a problem from a client and provide a really easy solution for them all wrapped up with the perfect exit strategy.”

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