Just one of the many uses of short term lending…
Brightstar’s broker presented them with a case where the customer, a property developer, wanted to purchase a run-down bungalow at auction to refurbish and sell on at a profit. The purchase price of the property was £95k, the estimated costs to bring the property back to a habitable state was £28k and the expected value post works was £170k.
The property was uninhabitable due to its state of repair and the entire property, including garden, needed heavy refurbishment.
The property was for sale at auction which meant that the customer was bound by auction terms so the finance needed to be guaranteed and to be available within the timeframe required by auction terms.
The property was in an area where bungalows were in high demand and we were able to source a lender that offered terms at 80% LTV on a rate of 1.15% pcm.
Explore further scenarios where short term finance can be useful here.