A property developer identified a three-bedroom house being sold below market value because the vendor wanted a quick completion.
The property was structurally sound but needed modernisation before it could be refinanced onto a longer-term buy-to-let mortgage.
The developer had funds available for the refurbishment works, but needed £185,000 to complete the purchase and secure the opportunity before another buyer stepped in.
The funding
HFBS considered the case on a first-charge basis, lending £185,000 at below 60% LTV.
Because the borrower was experienced, the security was straightforward and the exit strategy was clear, HFBS was able to assess the case quickly and keep the transaction moving.
The bridge was agreed for up to 12 months, giving the developer enough time to complete the refurbishment, let the property and arrange longer-term BTL finance.
The exit
Once the works were completed and the property was tenanted, the borrower planned to refinance onto a conventional buy-to-let mortgage and repay the HFBS facility.
Why HFBS worked
The case needed speed rather than complexity. HFBS was able to look at the property, the borrower’s experience and the proposed refinance exit and make a practical decision without unnecessary delay.