Refinancing to Change the Use of a Property

Loan Amount:
£385,000

Property Value:
£9,420,000

LTV:
66%

Conversion projects can be difficult to get off the ground where there’s also existing financial obligations. A client approached us for finance that would be used both for refurbishment work, along with covering existing charges.

To make sure all final bills would be covered effectively, our underwriter went through the details thoroughly. We not only made sure we were on top of what was owed to external third parties, but we also combed through building works.

We also confirmed that this kind of investment strategy matched the client’s background.

Working with the client’s builders

The client planned to convert one property into multiple ones, with the long-term goal of renting them out. As the project was set to be substantial, our underwriter focused on the schedule of works needed.

This schedule confirmed exactly how our funding would be split by task. What’s more, we worked with the client to clearly understand how our remaining funds would be used.

What’s more, we saw that planning permission had been granted for the work, that the borrower had a lot of experience in this field, and the valuer confirmed the investment’s potential. As such we delivered funding for the project, as well as the outstanding balances.

We can move as quickly as investors can

Refurbishment, conversion, development plans and the like are set to come to the forefront over the coming months and years. Both the Conservatives and Labour unveiled plans to ramp up their building efforts ahead of a looming general election.

These efforts may incentivise developers and property investors to act. Especially considering how much underutilised space there is in the UK.

Fortunately, should we see a rapid uptick in activity, we’ll be ready to respond. Even in busier times, we can have funding issued in as little as 3 days. We’re there for property investors who want to jump on any opportunity they come across.

FAQs

How do you help clients looking to change the use of a property?

We specialise in providing flexible bridging finance that enables clients to adapt a property’s use quickly, whether it’s converting a commercial building into residential units or vice versa. We know that planning permissions, tight deadlines and unique circumstances often require tailored funding. Our bespoke approach ensures that clients can unlock the value in their properties without unnecessary delays.

What makes your bridging loans stand out in a competitive market?

We pride ourselves on being a lender that listens to our clients’ specific needs. Our loans are designed with speed and certainty in mind, allowing borrowers to act decisively when opportunities arise. With no rigid tick-box criteria and an ability to consider complicated real estate cases, we provide solutions that enables borrowers to move forward quickly.

How are current market trends influencing demand for bridging finance?

As the property market continues to evolve, we’re seeing increased demand for short-term bridging finance to capitalise on new opportunities. Investors and landlords are looking to repurpose or upgrade properties in response to changing demand, such as the growing appetite for residential units in former commercial spaces. Our bridging finance can give them the agility they need to move quickly in this dynamic landscape.

What criteria do we consider when assessing a bridging loan application?

Each case is assessed on its own merits. We look at the value of the property, the borrower’s exit strategy, and the feasibility of the project. Our underwriters take a common-sense approach, meaning we’re able to consider unusual or time-sensitive scenarios. This allows us to support clients who may not fit the standard profile, ensuring they get the funding they need when they need it.