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Case Study: Flipping a Two-Bedroom Flat

Case Study: Property Flipping a Two-Bedroom Flat

Client Profile: Our client is an experienced investor specialising in property flipping, who has successfully completed several large-scale projects with our assistance. For this project, they are focusing on a smaller property than their previous ventures, with less structural work required.


Property Details:

  • Location: Brent

  • Property Details: Two-bedroom ground floor flat

  • Purchase Price: £700,000

  • Lease Extension: 999 years (completed simultaneously with purchase)

  • Property Status: Vacant

  • Construction: The property has external walls made of solid brickwork with part-render, beneath a pitched slate-tiled roof. The main floors and stairs are constructed from timber, and the windows are double glazed.


Project Overview: The client plans to carry out a refurbishment and add a small extension to enhance the value of the flat. Although this project is smaller in scale compared to the client's previous ventures, it is expected to significantly improve the property’s market value.


Scope of Work:

  • Refurbishment Costs: £321,000 (fully funded by us)

  • Planned Extensions:

    • A single-storey side-to-rear extension to the ground floor flat.

    • Alterations to the detached garage (outbuilding) at the rear of the property.

  • Planning Permission: All necessary permissions have been granted for the proposed works, including permission for the 13 specific alterations mentioned.


Financing:

  • Loan-to-Value (LTV): We provided 75% LTV on day 1, helping the client secure the purchase of the property.

  • Gross Development Value (GDV): The project is projected to have a GDV of £1,550,000, indicating a healthy increase in value upon completion of the refurbishments and extensions.


Conclusion: This project, though smaller than the client’s usual scope, is strategically focused on maximising the value of a relatively straightforward refurbishment and extension. The combination of the property's strong starting price and the planned enhancements makes this a promising opportunity for a profitable sale upon completion.


We are pleased to continue working with our client and look forward to seeing the results of this project.


*The attached picture does not represent the property.

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borrow@bridging.group 0207 052 1652 

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