Helena*, an experienced property developer, purchased a semi-detached house in North West London.
Originally built around 1900, the property had been converted into two separate flats at some point. Her plan was to restore it to a four-bedroom family home, following approved planning permissions.
The Project
At the time of inspection, the property was in shell condition and uninhabitable. Helena was undertaking extensive renovations, including a loft conversion, filling in the side return, and a full internal refurbishment.
Once completed, the house would feature a reception room, open-plan kitchen/dining area, utility room, cloakroom, and WC on the ground floor. The first floor would house two bedrooms, both with en-suites, one with a dressing room, and a family bathroom. The second floor would contain two more bedrooms, one with a dressing room and the other with an en-suite.
Financing
Helena approached us after her original lender declined to provide additional funding. With her planning approvals secured and the change of use confirmed, we were able to provide a bridging loan.
We arranged an initial day 1 amount and agreed to provide additional tranche funding as the project progresses. The loan details are as follows:
Initial loan: £820,000
Interest rate: 0.99%
Gross LTV: 57%
Total refurbishment costs: £739,000
Current spend: £150,000
Estimated GDV: £2.35 million
Loan term: 12 months
Exit strategy: Sale of the completed property
Helena’s project was well-planned, and with our funding, she had the necessary capital to complete the transformation. The loan was completed within two weeks, allowing her to continue without delay.
Outcome
Once completed, the property is expected to have a significant uplift in value, ensuring a profitable exit strategy through a sale. With her experience in property development, Helena is well-placed to see the project through to success.
*Name changed for privacy purposes.