Clever Lending has recently packaged a £146,900 regulated bridging facility for a broker’s client who wanted to purchase and renovate a farmhouse in Blackwood, Gwent.
The property was purchased at auction with no agricultural ties but was not mortgageable in its current state. It required a substantial amount of work including the safe removal of an asbestos roof, damp and timber treatment, a full electrical rewiring and general decoration.
The case was introduced by a broker who also provided the advice. Clever Lending worked quickly in order to complete just six weeks after the initial case submission. It placed the case with MT Finance, packaged up ready with the schedule of works and quotation for asbestos removal from the outset in order to save time.
Due to the property being located in rural South Wales and having an asbestos issue, the maximum loan to value (LTV) available was 65%. The broker’s clients intend to live in the property once works are completed and will exit via a family gift and remortgage of another property they own.
Nicola Ferguson (pictured), commercial and bridging specialist at Clever Lending, said: “This was an interesting case because the issues with the property meant it was totally unmortgageable when bought at auction. Luckily, the client’s partner is an electrician and so could make a start on the rewiring process immediately after the asbestos had been removed.
“By the end of the process the introducing broker will have arranged a number of mortgages – they remortgaged the customer’s buy-to-let property for the deposit for the purchase and then there is the bridging loan and the remortgage as exit.
“All in all, a good income stream for the broker and a solution for the customer to return and refer.”
Emily Hatt, junior underwriter at MT Finance, added: “The case was definitely a combined effort. From the advice provided by our valuer, reports obtained by specialist engineers, right through to the exit lender confirming they were happy to lend with the evidence provided and repay our loan, it was great to see all parties come together to meet the auction deadline.
“With complex cases like this, it’s crucial that we as the lender have a great relationship with our broker. Nothing was ever too much of an ask for Nicola and the process wouldn’t have been as seamless without her.”