The borrower aimed to buy the property to refurbish and then add it to their existing BTL portfolio. But there was an unusual issue to deal with.
The basics:
Initial loan: £135,000
Rate: 0.95%
Issue: outstanding lease from the 1700s
Completion: within 5 days
With years of experience in housing, the client intended to take out a 6-month bridging loan of £135,000 with us. They had to complete a purchase of a freehold house as soon as possible so as not to lose their deposit.
Interestingly, the house also had an outstanding lease from the 1700s. The issue was cleared by a solicitor, which led to a speedy completion - 5 days from the date we'd received their application.
While the purchase price was £155,000, thanks to the bridge, the value of the property increased to £220,000 after refurbishment.