Refurbishment finance on a residential property in Richmond, London. £380,000 facility for 8 months. LTV 82%
- Borrower was given the opportunity to purchase a property in need of refurbishment. A 10% deposit had been paid, and the client was to fund the refurbishment. However, a high loan to value was required.
- Borrower had completed a number of other refurbishment properties using funds from Hope Capital, and due to the relationship we had, we were able to facilitate a higher LTV than we would usually consider.
- Hope Capital facilitated a short term facility taking into account the works that were due to be undertaken, and the increase in value that this would have.
- Refurbishment works included a full conversion of the layout of the apartment, including creating an extra bedroom. All works were completed within 3 months ready for the property to be marketed for sale.
- Hope Capital closely monitored the refurbishment works and effect on value throughout the term of the loan.
- Once refurbishment was complete, the LTV was down to 59%
- By using Hope Capital, the borrower was able to take advantage of an opportunity to increase the value substantially and received an offer for £225k above the initial purchase price, allowing them to grow their property portfolio.