Anytime I get asked for bridging I ask is there an alternative? If you don’t have to complete quickly and the property has a kitchen and bathroom there may be BTL refurbishment mortgages out there as an alternative.
It is provided in two amounts. The lender will provide a loan of up to 80% of the lower of the purchase price or valuation. The valuer is provided with a detailed schedule of works and they provide an after works valuation along with a rental figure. The lender will base their end loan on the completed value and rent. The difference between the two is retained by the lender (retention).
The work is completed and the valuer does a re-inspection. If the after works valuation is confirmed then the retention is released to you.
If you are looking to convert a property into an HMO then with experience you have access to a specialist HMO refurbishment mortgage or you use cash or bridging finance.Refurbishment