Shawbrook Bank has supported a customer with a £189,000 bridging loan, enabling them to purchase a three-bed property at auction and complete refurbishment works.
A Shawbrook strategic partner, Vantage Finance, approached the bank seeking a bridging loan on behalf of their client wanting to purchase an end-terraced house in Birmingham for £220,000 at auction. The customer, an experienced portfolio landlord, planned to refurbish the property and sell on, with the works initially estimated to cost around £18,000.
The property was later found to have some issues with damp and asbestos, as well as requiring some repairs to the roof, meaning an additional £15,000 was needed to complete the renovations.
Shawbrook Bank was able to provide a bridging loan at 85% LTV including its ‘Lending for Refurbishment Costs’ product addition, enabling the customer to raise £22,000 of the funds needed to complete the works and sell the property. Being an auction purchase, the case was time-sensitive, but the bank acted quickly, comfortably completing the case within the requested six-week timeframe.
Gavin Seaholme, head of sales at Shawbrook Bank, said: “This case really highlights the benefit of our innovative Lending for Costs product addition. We were one of the first to bring this to market back in 2018, and it has proven extremely popular, not only helping customers quickly secure their investment opportunities, but also to complete refurbishment projects to maximise their returns.
We launched the product option to meet the demands of the market, and with renovated properties offering the chance to attract more tenants, secure higher rents and boost the value of a property, it’s clear to see the need for this type of solution is as strong as ever.”
Lucy Barrett (pictured), managing director at Vantage Finance, added: “In the three years since Shawbrook launched this innovative product option, it has become an important string to the professional investors bow, supporting many of our clients along their property journey. With the bridging market continuing to gain momentum, it’s great to see lenders like Shawbrook meeting this increasing demand, and we look forward to finishing the year very strongly in this space.”
