It isn’t everyday you inherit a house, but with the requirement to spend a lot of money on its derelict state the benefactor didn’t know where to turn when her bank refused to advance a loan for refurbishment works.
Thankfully a broker approached Holme Finance Bridging Solutions (HFBS) on the benefactor’s behalf requesting funding to enable the semi-derelict property to be transformed for a quick sale.
Dan Yendall-Collings, senior underwriter at HFBS says: “Our broker’s client had been let down by her bank who had refused to approve her application or compromise on her catch 22 situation. A mortgage was refused based on the fact she couldn’t provide evidence of meeting monthly payments and the property being in a semi-derelict state wasn’t habitable.”
The benefactor had no intention of becoming a landlord, and had no desire to live in the property but couldn’t afford to maintain the house, so after the refusal of a loan from her bank she looked for alternative funding.
Dan continues to say: “In consultation with local estate agents the client was advised that with a limited amount of investment it could achieve a sale price of £300,000, £100,000 above it’s current valuation of £200,000 as semi-derelict property. We did need a full valuation purely down to the current state of the property. But thankfully the valuation confirmed that spending just £50,000 would transform the property into a mortgageable asset where a quick sale would likely be achieved.
HFBS completed a full valuation, which confirmed the property in its current state to be worth £200,000. With a quote from the builders of £50,000, and confirmation of a four-week turnaround, HFBS were happy to advance £50,000 as a net loan for up to 12 months giving her time to complete the works and achieve a sale.
HFBS issued a £50,000 bridging loan over a 12-month term at 1.45% per month.
HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £10,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. No solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, no default rates. HFBS really mean business.
Simpler, quicker, cheaper.