This case study outlines the purchase of a two-bedroom, unmodernised flat in North West London, acquired with the assistance of bridging finance. The buyer saw strong rental potential in this buy-to-let (BTL) investment due to its prime location and affordability through short-term bridging finance.
Property Overview
Purchase Price: £220,000
Loan-to-Value (LTV): 65%
Gross Loan: £143,000
Property Type: Leasehold flat (100+ years remaining on lease)
Location: Above a commercial property in North West London
Rental Potential: Expected rental income will cover most monthly interest payments
Challenges
Several logistical challenges arose during the transaction. Communication with the seller’s solicitors was limited, which initially slowed the process. The buyer’s solicitor also experienced scheduling constraints, and the auction house presented some unexpected fees.
Solution and Resolution
With the support of a proactive legal team, the buyer managed these challenges effectively. The team maintained steady communication with all parties and ensured that deadlines were met, keeping the bridging loan on track and avoiding delays.
Outcome
The purchase was successfully completed, securing a promising rental property for the buyer and maximising the bridging loan’s potential as a short-term financing solution.
Key Takeaway
This case illustrates the advantages of a bridging loan in property investment and the importance of a dependable legal team in such transactions. With effective guidance and support, buyers can navigate hurdles smoothly, ensuring successful outcomes even in complex transactions.