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FAMILY SECURES BRIDGING FACILITY FOR THEIR NEW HOME, WHICH WAS PURCHASED AT AUCTION

AND REQUIRED LIGHT REFURBISHMENT

Objective

Our introducers client purchased their new home in Wales at auction at a closing cost of £210k  Since the property will be the clients family home, this case fell into the regulated bridging category.  The property needed a light refurbishment which included general décor and a new kitchen.

Obstacle

When purchasing a property at auction, there is a strict 28 day deadline to complete.  Bridging finance can be secured quickly, but this case was managed during the rush to beat the stamp duty deadline and therefore, there were potential delays to overcome with the conveyancing process.

Outcome

The team at Brightstar were able to agree terms with one of its panel lenders to lend the client 64% of the purchase price, totalling £139,842 plus interest and fees.  In addition, the client had a reserve pot of £25k agreed, to cover the cost of the refurbishment.  The uplift value came in at £255k and the client was able to refinance onto a mainstream mortgage in order to exit the bridging facility well ahead of the 12 month term agreed.

 

This case study demonstrates how we’ve been able to obtain 75% LTV (gross), and complete the case within the 28 days deadline.

 

Summary of case:  

  • Advance – £139,842 (net) plus fees £4,057 (gross facility) £143,899 to purchase the property and a further £25k for the refurbishment works
  • Rate – 2% fee, 0.75% PCM, no exit
  • Term – 12 month, rolled up facility
  • Commission paid to introducer – £1,411 (1% of the total facility).  This case was a name and telephone number referral to Brightstar, where our team provided the client with the required advice.

 

SUBJECT TO STATUS. 

PRODUCT AND CRITERIA AVAILABILITY SUBJECT TO CHANGE OR WITHDRAWAL AT ANY TIME.

FOR INTERMEDIARIES ONLY.

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