Loan amount: £858k ,LTV: 75%, Term: 9 months/5 yr fix

The Enquiry

A broker approached Lendco on behalf of an experienced portfolio landlord looking to purchase a multi-unit block (MUB) in East London. The client needed a lender that could move quickly, providing certainty of execution on a competitive purchase while also funding a light refurbishment before transitioning onto a longer-term solution.

The borrower had a strong track record of managing multiple investment properties, making them well placed to take on the project. They required a loan of £858,000 at 75% LTV, with a 9-month bridging facility and a planned exit onto a 5-year fixed Buy-to-Let mortgage.

The Process

With speed being a priority, we worked closely with the broker to keep the transaction moving, completing the deal in just three weeks.

The planned refurbishment was light-touch, focusing on improving the communal areas and upgrading two vacant individual units. These works were designed to enhance the  appeal of the two units, and therefore increase their rental income, rather than involving any structural alterations.

The deal was further strengthened by the fact that the majority of the units were already tenanted, providing immediate income, while prospective tenants had already been identified for the refurbished units. Combined with the borrower’s proven experience as a portfolio landlord, this gave us confidence in both the business plan and the proposed exit strategy.

The Outcome

The refurbishment was completed successfully in five months, well within the original nine-month bridging term. Once the works were finished, the borrower refinanced seamlessly onto a Lendco Buy-to-Let mortgage, providing a straightforward transition to long-term funding without the need to source a new lender, or wait for the end of the term.

As part of our Bridge-to-Let proposition, the borrower also benefited from a 0.15% discount on the Buy-to-Let rate card. The broker received a procuration fee on both the bridging loan and the Buy-to-Let refinance, rewarding them throughout the client’s journey. Further, the client also benefitted from a refund of their valuation fee, another feature of our light-refurb bridge-to-let proposition.

The case highlights how Lendco’s flexible underwriting, fast decision-making and integrated Bridge-to-Let solution can help experienced landlords secure properties quickly, add value through refurbishment and move efficiently onto long-term finance with a clear, reliable exit strategy.

Get in touch today to find out more: https://lendco.co.uk/products/bridging-finance/