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Case Study – BBC Homes Under The Hammer: Light Refurbishment Bridging Loan

kitchen and lounge

Case Study – Our Very Own Client Was Featured On the BBC With The Property We Helped Fund!

We recently had the pleasure of watching one of our clients appear on the popular BBC daytime TV show  ‘Homes Under the Hammer’.
Our client, TJ, had offered to purchase a run-down property in need of light refurbishment, so he came to us for assistance with structuring the finance.

Due to the property’s condition, we arranged a refurbishment bridging loan (short-term finance) which allowed TJ to secure the property and carry out the much-needed light refurbishment.

The works consisted of a garage conversion to create a fourth bedroom, along with a reconfiguration of the ground floor. The property then benefited from a brand-new kitchen, bathroom, and total modernisation throughout, giving the property a new lease of life.

An exit strategy is essential with Bridging Loans; TJ’s exit strategy from his refurbishment bridging loan was originally to sell the property; however, after seeing the final product, he decided to retain the property as an investment. We then refinanced the property onto a long-term buy-to-let mortgage, allowing TJ to source a tenant to enjoy a beautiful home.

Financing the purchase with a refurbishment bridging loan

We secured an 85% LTV Light Refurbishment Bridging Loan for the initial purchase. (Mobile users – turn your phone landscape to view the tables below).

Purchase Price £150,000
Works Costs £33,000
Financing costs and Stamp Duty Land Tax approx. £19,500
Total £202,500

Financing the refinance onto a buy-to-let mortgage

The end valuation came in at £250,000, meaning TJ could refinance at 75% LTV on a long-term Buy-to-Let Mortgage.

New Loan £187,500
Cost to repay Bridging Loan £129,667.50
Money Out £57,832.50

Want to see this fantastic property renovation?

You can watch our client TJ feature on the show by clicking the link below.
BBC iPlayer – Homes Under the Hammer – Series 25: Episode 74

TJ’s Testimonial

“Thank you, Megan, for all your assistance on this purchase. I’ve had the pleasure of working with Megan over the last year on numerous property deals. She is highly knowledgeable and very responsive.

Megan delivered the finance on this purchase within days and is always at hand to answer any questions. This made the whole process of acquiring the property seamless. I highly recommend Megan and her team if you have any property deals that require funding.”

Before Renovation

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before 2

before 1

After Renovation

after 1

after 2

after 3

How can Advocate Finance help?

If you are looking for a light or heavy refurbishment bridging loan for your next project, we are here to help. Advocate Finance are experts in bridging loans for property development & light/heavy refurbishments.

Get in Touch with Us Today

We provide a FREE assessment on all our services.

Please contact me directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.

Picture of Megan Parkin

Megan Parkin

Senior Property Finance Adviser | megan@advocatefinance.co.uk | 01206 544333
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Picture of Megan Parkin

Megan Parkin

Senior Property Finance Adviser | megan@advocatefinance.co.uk | 01206 544333