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Case Study: Bridging Loan for Property Flip

Bridging Loan for Property Flip

This case study details the third project undertaken by our client with us. The client has a proven track record of successfully managing property refurbishment and flip projects, demonstrating competence and reliability.


Property Details


Location: NW6

Type: Period end terraced house

Construction Year: Circa 1900

Condition: Poor internal condition; not habitable

Issues: Informally converted into two self-contained flats without planning permission or building regulation approval


Financial Overview


Purchase Price: £1,540,000

Renovation Costs: £800,000

Gross Initial Loan: £1,078,000

Gross LTV: 70%


Project Plan


Refurbishment Period: 6-8 months

Loan Term: 12 months

Expected Sale Price: £3,200,000


The property required a total refurbishment to convert it back into a single, high-quality residential home suitable for sale. The works were extensive, addressing both the unapproved flat conversions and the overall poor condition of the building.


Loan Arrangement


The client secured a gross initial loan of £1,078,000, which represented 70% of the property's value at purchase. The bridging loan provided the necessary capital to cover the purchase and part of the refurbishment costs, enabling the client to focus on the renovation works.


Visual Documentation


To highlight the transformation, we present before and after pictures showcasing the extensive refurbishment. These images illustrate the property's journey from an uninhabitable state to a high-quality residential home.


Before


After


Conclusion


This project exemplifies the use of a bridging loan to facilitate the purchase, refurbishment, and re-sale of a property in need of significant improvement. By addressing the informal conversion and restoring the property to a high standard, the client expects to realise a substantial profit upon sale. The anticipated sale price of £3,200,000 reflects the added value from the refurbishment, resulting in a successful property flip.

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borrow@bridging.group 0207 052 1652 

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