Black & White Bridging has completed a £206,000 residential bridging loan to finance the acquisition and refurbishment of a six-bedroom property in Liverpool.
The 12-month facility is being used by the borrowers to bring a detached house, which had stood empty for more than 10 years, back into use before refinancing onto longer-term finance.
The property required extensive remedial work when acquired, including the removal of accumulated waste and belongings, damp plaster and rotten timber flooring.
REFURBISHMENT UNDER WAY
The borrowers, who have more than 20 years’ experience in the construction industry, are carrying out much of the refurbishment themselves and have committed around £100,000 of their own capital to the project.
Initial clearance and stripping-out works have already been completed, including removal of internal waste, damaged plaster and flooring. Around half of the waste from the front and rear gardens has also been cleared.
The next stage will include specialist electrical work, damp-proofing, landscaping and the removal of the remaining external waste.
Although the house originally appeared to be a four-bedroom property, it had previously been extended to provide six bedrooms over two storeys. The borrowers intend to retain the property as a rental investment once the refurbishment is complete, with a refinance forming the planned exit from the bridging loan.
Shahed Popat, relationship director at Black & White, says: “While the property presented a number of challenges, the borrowers had the experience, capital and clear strategy required to take on the project.
“The property’s condition was significant, but it was only one part of the overall picture. With more than 20 years’ construction experience, a substantial personal investment and a clear plan to refurbish, let and refinance the property, the borrowers demonstrated a strong understanding of how they could unlock its potential.
“This is exactly where specialist lending can add value. By understanding the people behind the transaction, as well as the property itself, we were able to structure a facility that gave the borrowers the funding they needed to get the project moving and that will eventually provide much needed accommodation to the area.”
