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

new kitchen

Our client was featured on the BBC with the property we helped fund a refurbishment bridging loan for!

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

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

The property 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; Napa’s exit strategy from his refurbishment is to retain the property and refinance onto a long-term buy-to-let mortgage at the increased post-works value. Napa has been able to provide another refurbished home for a tenant to enjoy.

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 £110,000
Works Costs £15,000
Financing costs and Stamp Duty Land Tax approx. £13,876
Total £138,876

Financing the refinance onto a buy-to-let mortgage

The end valuation came in at £190,000, meaning  Napa could refinance at 75% LTV on a long-term Buy-to-Let Mortgage.

New Loan £142,500
Cost to repay Bridging Loan £93,360
Money Out £49,140

Want to see this fantastic property renovation?

You can watch our client Napa feature on the show by clicking the link below.
BBC iPlayer – Homes Under the Hammer – Series 26: Episode 33

Napa’s Testimonial

“Advocate Finance have been helping me finance my property deals since 2020. I’ve been working hand in hand with Megan Parkin, who helped obtain great finance products on the market and also helped me build in-depth relationships with some lenders. I worked with other brokers in the past that struggled to deliver, did not understand my goals, and as a result negatively affected my business. On the other hand, Megan understood my business goals, my situation and she is helping me get there. In the time that we have been working together she has helped finance over 10 property deals. So I will highly recommend if you are looking for an efficient broker that understands property investment”

Before Renovation

old lounge old kitchen 1 old kitchen

After Renovation

new lounge new kitchen 1 new kitchen

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.

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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 | | 01206 544333
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Picture of Megan Parkin

Megan Parkin

Senior Property Finance Adviser | | 01206 544333