£430,000 – Refurbishment Bridging Loan on Bristol HMO Property

The Story

An existing client, a portfolio landlord in Bristol who specialises in student HMO property in Bristol, asked Fox Davidson to arrange a loan to purchase a property in Horfield.

The plan was to carry out a refurbishment, adding a bedroom and renting the property as a student HMO to add to their Bristol property portfolio.

The Challenge

One of the main challenges was down to timing – the client had committed to completing the loan within 30 days.

They had cash but preferred to finance the property and keep cash back for more opportunities as and when they arise.

The requirement for funding to cover the purchase as well as the cost of the works is standard business for Fox Davidson.

We secure refurbishment bridging loans on Bristol property regularly, but with a stamp duty holiday in place, and both lenders and solicitors very busy, our client was relying on us to work with the right funder and to manage the various parties; lender, surveyor and solicitor.

The Solution

We decided to work with a London-based bridging lender who we work with regularly as they were able to make decisions within a few hours.

Additionally, they have solicitors that work exclusively on their transactions.

The finance:

• £367,500 70% loan against the purchase price plus 100% of the cost of works (£62,500) giving a total loan of £430,000.
• Rate 0.65% per month
• 2% lenders fee
• No broker fee

We completed the loan well within the 30 days the client required and will refinance the client on to long-term buy-to-let finance once the works are complete in a few months.

Bridging Loan Broker In Bristol

Fox Davidson is an award-winning Bristol bridging loan broker. For advice on refurbishment bridging loans in Bristol, please email enquiry@foxdavidson.co.uk or call us on 0117 989 7950.

Wesley Davidson

Director & Property Finance Consultant

About: Wesley has been in the industry for 20 years and has a wealth of knowledge in all areas of property finance. His real passion is working with property developers on the funding of development sites. His work ethos is to constantly gain more knowledge in order to better himself and offer more to clients and to be contactable at all times, this sets him apart from his peers.

Favourite Film: Last of the Mohicans

Quote: “In complete darkness we are all the same, it is only our knowledge and wisdom that separates us. Don’t let your eyes deceive you.” – Fat Controller