Together and Channel Finance Group have completed a £350,000 second charge bridging loan for two portfolio landlords refurbishing their rental properties.
The couple decided to upgrade properties within their 40-strong portfolio after several tenancies ended, with the aim of improving energy efficiency, adding value and increasing rental income.
Together provided the loan within 18 hours of submission. It was secured at 43% loan-to-value against the landlords’ five-bedroom terraced home in Glasgow.
Martin Bloe (pictured), regional account manager for Scotland at Together, says: “This case highlights how experienced portfolio landlords throughout the UK are still very much invested in the buy-to-let market, with Scotland delivering significant yields.
“They need to be supported with finance that moves at the speed they need, with minimal fuss, and can be delivered with confidence.”
Carlos Velasquez, specialist finance and bridging manager at Channel Finance, says he was “impressed” by the speed of the transaction.
He says: “A case like this would normally take a minimum of seven to ten days to complete and would usually need a full valuation. The Together team saw that this was a relatively simple case and were able to move at a much quicker pace, collaborating and communicating with us throughout.
“Being able to use the same solicitors, Scottish legal experts Wilson McKendrick, for both sides of the transaction also helped with the speed and ease of the process.”
The lender used an automated valuation model, while Wilson McKendrick represented both parties. Together’s underwriting team approved the valuation approach within one hour.
The clients have an agreement in principle to move to a residential mortgage within three to six months, once self-funded improvements to their home have been completed. The refinancing is intended to repay the interest-only bridging loan within its 12-month term.
The couple are also considering further additions to their portfolio and have requested funding for three purchases since completing the bridging loan.
