Case Study: Purchase & Development - £146,250

Location: Liverpool with 14 days from enquiry to loan

The project completed in January 2020

The Client:

An experienced developer had an impressive portfolio of successful residential and HMO buy-to-let let properties. They were seeking fast access to funding, to secure the purchase of a residential property.

The Property:

Located in a densely populated student area of Liverpool, the property was in poor condition. Funds were needed to enable them to deliver on their plans, to convert the property to an impressive HMO.

The Challenge:

With the sale agreed, the developer needed to lock down funds in order to complete the purchase. They also required additional cash to undertake a medium scale refurbishment. This would be used to convert the property from a three bedroom to a six bedroom student accommodation. The borrower was intending to complete the project within 6 months. They’d then refinance on to a buy-to-let mortgage.

The Solution:

Given the track record of the developer, Mint Bridging was able to provide a net advance for the purchase. We also provided an additional £90,000 to meet the development costs. The development tranche included a 10% contingency. The term of the loan was 12 months with planned development draw downs, including sufficient time within the term for the client to arrange their exit.

The Outcome:

The purchase of the property went according to plan. Works were completed on time and there was no need for the contingency funds. The client has now refinanced the property and the rooms are listed for-let. The property’s already gaining an impressive level of interest.