A repeat client approached us for assistance in refinancing an investment property in Southend-on-Sea. The six-bedroom detached house required refinancing as the term for the current 1st Charge was coming to an end.
With a strong understanding of the property market, the investor decided to cover the shortfall and requested quick refinancing.
Key Details
Current Market Value: £1,900,000
GDV: £2,200,000
Potential Rent Yields: £5,500 per calendar month
Initial Gross Loan: £1,330,000
Loan-to-Value (LTV): 70%
Interest Rate: 0.99%
Term: 12 months
Exit Strategy: Sale of property
Completion: 2 weeks
Property Overview
This newly built six-bedroom detached house was completed in the 2020s and features a modern design across three floors. Situated on a quiet residential street in a desirable area of Southend-on-Sea, the property boasts a spacious plot with ample room for four cars on the driveway. Despite some minor snagging works still to be finished, including tiling in the bathrooms and fitting a worktop in the utility room, the house is in excellent condition and ready for sale or rental.
Conclusion
Despite minor weaknesses, this Southend-on-Sea property has strong market potential. The fast and efficient completion of the refinancing within just two weeks provided our client with the financial flexibility to either sell the property or explore its rental potential further. With a GDV of £2,200,000, this property is well-positioned for a profitable sale.
This case illustrates the importance of quick and strategic refinancing when managing investment properties, ensuring opportunities for profit are maximised even as financial terms come to an end.