Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has recently completed a £261,000 interest-only heavy refurb bridging loan for the conversion of a single-family house into a six-bed HMO.
The run-down property was built in 1910 and was noted as “significantly dated throughout”.
General maintenance and repairs throughout the property had been neglected for multiple years, resulting in a significant amount of work being required to modernise the property.
Necessary work to be undertaken included damp, external joinery repairs, potential ceiling asbestos, leak damage and an old boiler.
Upgrades were also required in order to address a poor EPC rating.
Due to the potential of the property once converted into a high-yielding HMO and the customer’s experience on similar projects in the past, the loan was agreed on a nine-month term at 75% LTV.
Shawbrook was also able to add the arrangement fee on top of the max LTV instead of deduct it from the gross loan, therefore resulting in a higher net loan amount for the client.
The client quickly secured the funds necessary for the purchase to undertake the heavy refurbishment needed to begin the property’s transformation.
The borrower has also acquired the exit route — a term mortgage — which enables him to recover his deposit and the refurbishment funds spent, with the value increasing by almost 40% from the purchase price.
Brokerage Go Finance introduced the case to Shawbrook.
Gavin Seaholme, head of sales property at Shawbrook, said: “Working with expert broker partners and delivering a good customer journey and outcome are key to providing bridging solutions.
“At Shawbrook, we have an award-winning product offering with products that are aligned to our customers’ needs.”
Neil Moorhouse, managing director at Go Finance, commented: “The process with Shawbrook from quotation to completion is extremely straightforward with market leading pricing, which enables Go Finance to offer best-in-market products.
“Shawbrook are an extremely helpful bank on all levels and offer great support to the intermediary marketplace.”
Original article featured here…
The news comes after Shawbrook recently opened up its product switch platform to commercial investment customers to provide instant offers as part of its latest updates to the portal.