This case study details the third project undertaken by our client with us. The client has a proven track record of successfully managing property refurbishment and flip projects, demonstrating competence and reliability.
Property Details
Location: NW6
Type: Period end terraced house
Construction Year: Circa 1900
Condition: Poor internal condition; not habitable
Issues: Informally converted into two self-contained flats without planning permission or building regulation approval
Financial Overview
Purchase Price: £1,540,000
Renovation Costs: £800,000
Gross Initial Loan: £1,078,000
Gross LTV: 70%
Project Plan
Refurbishment Period: 6-8 months
Loan Term: 12 months
Expected Sale Price: £3,200,000
The property required a total refurbishment to convert it back into a single, high-quality residential home suitable for sale. The works were extensive, addressing both the unapproved flat conversions and the overall poor condition of the building.
Loan Arrangement
The client secured a gross initial loan of £1,078,000, which represented 70% of the property's value at purchase. The bridging loan provided the necessary capital to cover the purchase and part of the refurbishment costs, enabling the client to focus on the renovation works.
Visual Documentation
To highlight the transformation, we present before and after pictures showcasing the extensive refurbishment. These images illustrate the property's journey from an uninhabitable state to a high-quality residential home.
Before
After
Conclusion
This project exemplifies the use of a bridging loan to facilitate the purchase, refurbishment, and re-sale of a property in need of significant improvement. By addressing the informal conversion and restoring the property to a high standard, the client expects to realise a substantial profit upon sale. The anticipated sale price of £3,200,000 reflects the added value from the refurbishment, resulting in a successful property flip.