A mortgage broker referred a landlord with little experience of residential refurbishment, to complete the renovation of a five-bed terraced house in Manchester.
The client had bought the property with the help of private funds but had run out of time to complete the work. They had applied for a buy to let mortgage but the valuation report concluded that the house was still in too poor a state to qualify as security for a buy to let mortgage, which are only granted on immediately habitable, income producing dwellings.
He estimated that he would require c.£56k for the renovation which was likely to take a further 8-10 weeks, and £163k to repay the existing private loan.
The client was undecided on his final exit strategy, believing that either sale or rent would be a viable outcome. However, as he preferred to sell, BFS provided a standard 12-month loan term, without exit fees or ERC’s to allow for unexpected delays in refurbishment followed by sufficient time to realise a sale.
