The 9-month loan agreed at 65% LTV with a 0.99% rate per month, enabled the client to purchase the property at auction, which had no agricultural ties but was not mortgageable in its current state.

It required a substantial amount of work including the safe removal of an asbestos roof, damp and timber treatment, a full electrical rewiring and general decoration.

It placed the case with MT Finance, packaged up ready with the schedule of works and quotation for asbestos removal from the outset to save time. 

The broker’s clients intend to live in the property once works are completed and will exit via a family gift and remortgage of another property they own.

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Nicola Ferguson, commercial and bridging specialist at Clever Lending (pictured above), commented: “This was an interesting case because the issues with the property meant it was totally un-mortgageable when bought at auction.

“Luckily, the client’s partner is an electrician and so could make a start on the rewiring process immediately after the asbestos had been removed.

“The broker remortgaged the customer’s BTL property for the deposit for the purchase and then there is the bridging loan and the remortgage as exit.

“All in all, a good income stream for the broker and a solution for the customer to return and refer.”

Emily Hatt, junior underwriter at MT Finance, added: “The case was definitely a combined effort — from the advice provided by our valuer and reports obtained by specialist engineers, right through to the exit lender confirming they were happy to lend with the evidence provided and repay our loan — it was great to see all parties come together to meet the auction deadline.”