Signature Property Finance recently provided a bridging loan to an independent property developer, allowing them to refurbish and refinance a four-bedroom residential property in East Yorkshire.

“We have found the service provided by Signature Property Finance to be outstanding and we were really made to feel like our application was important at all times and they went the extra miles to make it happen. We would definitely recommend using their service and would not hesitate to use them again in the future”

Property developer in East Yorkshire

Although the benefits of Standard Bridging Loans have been well documented, many people are still unfamiliar with the process and are unsure of what to look for when trying to find a trustworthy short-term property finance provider.

When it comes to securing a bridging loan deal, certainty of funding and transparency are key, as you need a lender that fully understands your vision for the project and able to offer the required support to ensure the project proceeds with minimal delay.

For developers that choose Signature Property Finance, they can expect cost-effective solutions that are delivered promptly on the terms agreed at the outset.

Offering loan deals on the merits of the proposed project and not based on the experience of the developer, we have built a reputation for supporting clients across a range of projects, no matter how small or large they may be.

Signature Property Finance recently provided a bridging loan to an independent property developer, allowing them to refurbish and refinance a four-bedroom residential property in East Yorkshire.

Adding considerable value

An independent Yorkshire-based developer, with a small property portfolio of two adjoined homes, required funding to complete the renovation of the larger four-bedroom property, with a view to refinance both properties on a buy-to-let term loan.

With a combined value of £238k in their current state, the client was keen to raise 70% LTV with a gross loan of £166,600, so that they could complete the refurbishment on one of the properties. With a post-renovation estimated value of £240,000, the property would benefit from a £107,000 increase, with the necessary works expected to cost £30-40k, with the balance used for further real estate acquisitions.

The other two-bedroom property was already in good condition and had a market value of around £105,000, so a 12-month loan was agreed, which would give the client enough time to complete the renovation on the four-bedroom property.

Located in an attractive market town that has been recognised in the national media for its quality of living, it was important that the bridging loan deal was secured promptly, so that the client could complete the much-needed renovation, whilst meeting their time and budget requirements.

Supporting promising projects

Whilst there is a lot of optimism amongst developers that the worst of the pandemic is now behind them, the economic impact is still being felt across the UK. Unfortunately for some independent developers, this has made it very difficult for them to secure the necessary funding, meaning profitable opportunities to improve the UK’s housing stock have been missed.

However, as a short-term property finance provider committed to supporting clients of all experience levels, we assess the strength of a proposed project based on its merits. Once the necessary checks had been undertaken and the valuations verified, we were happy to provide a bridging loan of £166,000 on a 12-month term.

The primary source of repayment will be the refinance of the two properties onto a buy-to-let product, once the renovation work is complete.

It was evident that the project had been thoroughly calculated and the vision was achievable, once a bridging loan deal had been secured. This was a straightforward bridge against two structurally sound residential properties in an attractive market town, so we were happy to offer our support.

“Whether it is a developer’s first, fifth or fortieth project, we assess each scenario on its merits and make a lending decision based on the long-term validity of the project. Whilst it has been a difficult year for developers, we are more committed than ever to ensuring projects receive the support they deserve, so that the UK’s housing crisis can be improved one step at a time. When all parties to the deal understand their role and the need for cooperation, it’s possible to deliver deals smoothly and efficiently, as in this case.”

Bob Stones - Relationship Manager - Signature Property Finance