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Case Study: Bridging Finance for Refurbishment


Periodically, we come across cases that we believe other property investors would be interested to learn about. The summary below is one such case, highlighting the client’s unique requirements and how we provided a solution they were happy with. We hope you find this recent case study helpful!

The Property

My clients are no strangers when it comes to old, run-down properties in need of some TLC. Their most recent project was exactly that, a neglected property in dire need of a full refurbishment (as you can see from the before pictures below!).

Client Background

My clients are experienced property investors having successfully built a large rental portfolio. They are particularly focused on finding properties that require works, which allows them to increase the values to either sell for a profit or refinance at the increased value to release some equity. This is a popular strategy for investors as it allow them to recycle their cash and repeat the process.

Client’s Requirements

My clients were looking for a mortgage product which would allow them to acquire the property and carry out the refurbishment. Due to the property not being in a livable and lettable condition, the most appropriate route was to purchase using a bridging loan.

Bridging loans are a form of short term finance which allow works to be carried out under the terms of the mortgage. If the property is deemed to not be in a livable and lettable condition, you would not be able to finance the property using a traditional Buy-to-Let mortgage until the necessary works have been carried out to bring it up to a standard appropriate for letting.


We were able to secure our clients a bridging loan at just under 85% LTV towards the initial purchase price. This allowed them to purchase the property and complete the necessary works.

My clients opted for a 12-month term, which they believed would be long enough to complete the refurbishment and sale process. The term of the bridging loan is something we will always discuss with our clients prior to any applications being submitted to make sure everyone involved is happy and believes there is sufficient time to exit the bridge. If in doubt, we would always advise to take a longer term than anticipated to allow for any unexpected delays.

An 85% LTV bridging loan is available for light refurbishment projects only.  This provides a loan to assist with the initial purchase price, but you must be able to fund the refurb costs yourself. As my clients had the funds available to carry out the refurbishment themselves, this was the perfect solution for them!

Due to this particular property being ‘uninhabitable’, my clients were also able to apply for a stamp duty refund which was another saving!

The Finances

Purchase Price £207,500
Works £40,000
Financing Cost Approx. £20,000
All in Total £267,500

The clients originally based their end value on £325,000, however have just accepted an offer at £330,000!

Once they repay the bridging loan in full (£172,975), they will be left with surplus cash of £157,025. This means they are able to pull out all of their initial investment (deposit, work costs and financing costs) plus a profit of £97,500!


Client Feedback

“We’ve worked with Advocate Finance for a number of years now providing finance for our varied property portfolio. Megan is an absolute star, she works very hard to get the best product for our requirements and doesn’t disappoint with answering our never ending questions and challenges to overcome. A fantastic asset to the company.”


Before Refurb

bathroom before kitchen before

After Refurb

bathroom after kitchen after

How can Advocate Finance help?

If you have any projects in the pipeline where you think bridging finance could be beneficial, please get in touch so we can assess what options are available to you.

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Megan Parkin

Senior Property Finance Adviser | | 01206 544333
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Picture of Megan Parkin

Megan Parkin

Senior Property Finance Adviser | | 01206 544333