Bridging Finance Solutions (BFS) has finalised a bridging loan for developers who are transforming a three-bed bungalow into a stunning two-storey four-bed home in Harrogate.
The client had begun the conversion in 2019, however, works stopped abruptly due to Covid. Attempts to sell the scheme partially complete led to considerably reduced offers, and a decision was made to press ahead with the redevelopment and maximise profitability.
The scheme includes an extensive reconfiguration of the existing property into a large spacious family home in a highly desirable area. The client approached BFS at a point when the development was considered ‘topped out’, requiring window and door installation to become weather tight.
Adam Bluma of BFS explained: “This scheme highlights the affects that we are still feeling form Covid when many schemes simply stopped. Completion here was the most sensible way forward, allowing the developers to enjoy the highest return on their investment through onward sale.
“High street lenders simply won’t support semi completed builds such as this and therefore bridging was the most sensible solution in order to complete the build and be in position to sell on. BFS agreed to provide a facility of £591,500 across a 12 month period with six months to complete and six months to sell at an estimated £910,000.
“We are confident in the approach of the developer, the value in the site and the end value upon completion, and look forward to seeing the luxury home take shape in the coming 12 months.”
