14 Mar 2019

Seamlessly moving from a bridge to a refurb

A quick move onto a bridging product ensured this borrower didn't miss out on his property. Learn how he then seamlessly moved ono a refurbishment product once he gained planning.

A semi-commercial property in Hatfield

The property was in Hatfield, Hertfordshire, located on a parade of shops with two vacant commercial units on the ground floor and one residential on the first floor. 

Commuters were increasingly interested in the area, due to its strong transport links into London.

An experienced borrower

The borrower was in the building trade and had previous experience with property refurbishment and commercial conversions. 

The refurb project

They wanted to convert the asset into three one-bedroom flats, one two-bedroom flat, a small shop and two garages.

Issues with the valuation

The borrower was initially introduced to us by Pilot Fish to acquire then refurbish the asset, however due to issues with the valuation, they opted to switch to an Octopus Property bridging loan last minute. This was done seamlessly and at the same rate, which enabled them to purchase the asset.

Planning permission was then granted to do the works.

Moving from a bridge to a refurb

We ensured the borrower could still complete their property purchase, by acting fast on the bridging loan. Following planning, we re-wrote this loan onto our refurbishment product. No ERCs were charged, and the same surveyor and solicitors were used to reduced costs.

Refurb lending terms

- Purchase price: £375,000

- Total loan: £429,495

- Interest rate p.a.: 9.6%

- Term: 10 months

- LTC: 57.3%

- GDV: £750,000

What our broker said

“This case is a great example of why we are happy to recommend Octopus to our clients. A flexible and pragmatic lender that offers bridging, development and exit products so when needed they can support clients through their entire property journey in a cost-effective manner.”

Richard Jones, Managing Director, Pilot Fish