Bridging and development finance lender Roma Finance has provided bridging funding for a buy-to-let renovation property, working with specialist commercial broker Key Commercial Finance.
Roma was able to help the customer, who found the property on an online auction and was a first-time developer. The loan was for £120,000 over nine months to acquire the property, with the exit being to refinance on to a buy to let mortgage.
To help fund the renovation works the customer sold one of his other properties to release money to complete the project. Gross development value was £235,000 with an excellent opportunity for rental.
Simon Micklethwaite, business development manager at Roma Finance, said: “Working with a customer who was a first time property developer, I made sure I was their dedicated point of contact.
“Upon meeting the customer and going through the plans for the project I was satisfied that the transaction would yield favourable returns, particularly with such a well located property that would perform well in the local buy to let market.
“The customer was very happy with both the speed at which the finance was delivered and the high level of service myself and the Roma team provided at every stage of the application through to completion.”
Vicki Walker of Key Commercial Finance, said: “We were introduced to the client via a residential mortgage broker who was unable to arrange a buy-to-let mortgage as the property wasn’t complete. Through Roma we arranged a nine month bridge at 70% LTV to enable the customer to secure the purchase.
“He will fund the work to complete the property and once finished, the residential broker will proceed with a buy to let mortgage.”
The property, near Halifax, was partly completed and needed some renovation works to be finished as the initial developer pulled out of the project.
The property is ideal for investment, having three bedrooms and sitting in a generous plot of land, and it is expected to be much sought after on the rental market.