Two adjoining cottages, considered to be a ‘heritage asset’ by the local council, are to be given a new lease of life following a development finance deal agreed by Bridging Finance Solutions.
Plans to extend and refurbish the Hereford cottages which are set in an exceptional rural location of eight acres, creating a single stunning dwelling, are now well underway.
Keith Litherland, Business Development Manager at Bridging Finance Solutions explained: “The property in its current condition isn’t suitable for a traditional mortgage as its completely uninhabitable, hence the need to bridge and restore the property, and when completed it can be re-mortgaged or sold.
“Our client is set to fully refurbish the property, extending the existing house with plans to add stabling and other equine facilities to utilise the land available, creating an impressive home whilst significantly enhancing the value.”
BFS have agreed to provide development finance, contributing towards the purchase and renovation costs in staged payments. Valuations were challenging given the dilapidated state of the property and lack of comparable properties, however, BFS worked closely alongside the valuer and solicitor to devise a viable solution.
The gross advance will be £322,000 with £130,000 towards the initial purchase price of £260,000, and the remaining funds to be utilised for refurbishment and extension works. The property is expected to be worth in the region £650,000 once complete.
Keith added: “Projects such as these can be complex in terms of financing, however, this is where bridging comes into its own. A collaborative approach between ourselves, the client and other professional services was undoubtedly key to the success here. Drawdowns will continue at pre-agreed stages until completion later this year.”