Signature Property Finance has completed a light refurbishment bridging facility to support the purchase and upgrade of a three-bedroom semi-detached property in Peterborough, Cambridgeshire.
Structured to allow the borrower to unlock value through targeted renovation works, the deal highlights Signature’s ongoing commitment to backing well-planned projects with strong fundamentals and clear exit strategies.
Unlocking potential through refurbishment
The property in Peterborough, was acquired for £150,000 and although structurally sound, the purchaser recognised the need for it to be modernised, if it was to achieve full rental potential and deliver long-term value.
Having been introduced via Brickflow, the digital marketplace for specialist property finance, Signature agreed a gross facility of £153,000, structured over a 12-month term. The funding was designed to cover both the purchase and 100% of the planned refurbishment costs.
A full strip-out and replacement of the kitchen, bathroom and flooring was included in the project plan, as was improving the internal decoration and undertaking minor remedial works to make the property more appealing to the rental market.
The works, estimated at £30,000, will be delivered by an experienced contractor that the borrower has successfully worked with on previous projects. Completion of the works is expected within three to five months, with drawdowns released in arrears based on site inspections by Signature’s panel monitoring surveyor.
Strong fundamentals and clear exit
The property benefits from a PRC certificate, confirming that it has been fully repaired under the Leeds 1 scheme and is now considered standard construction, which makes it suitable for mainstream buy-to-let [BTL] mortgage lending.
The expected uplift following refurbishment is significant, with an independent valuation confirming a gross development value (GDV) of £250,000, supported by recent comparable local sales.
Market rental values in the local area are strong, with the valuer assessing the expected rental income at £1,350 per month (£16,200 per annum).
The primary exit strategy is a refinance onto a buy-to-let mortgage at up to 75% LTV, supported by a BTL offer in principle with a leading specialist nationally recognised long-term lender. Should refinancing be delayed, an open market sale provides a viable secondary exit.
Supporting refurbishment ambitions
The property’s location, approximately 12 miles west of Peterborough city centre, offers excellent transport links, local amenities, and strong tenant demand. Measuring 106 sqm, the house sits in a well-established residential area, surrounded by similar homes.
Signature’s day-one advance of £103,020 provided the borrower with 69% LTV against the current market value, with refurbishment funding drawn in certified stages. Overall, the gross loan represents 61% of GDV, providing comfortable headroom for both refinance and sale options.
Josh Barrett, Relationship Manager at Signature Property Finance, commented:
“This is a classic light refurbishment deal where speed, structure and experience are key. The client had a clear plan, experienced contractors in place, and a proven approach to adding value through sensible, targeted works.
“It can make a significant difference to the borrower when they work with innovative lenders like Signature, who look at the deal, not just the numbers. Typically, we will see the full picture and advise clients to structure the deal differently to ensure it’s a good deal, better.
“By taking a pragmatic view on the construction history and validating the refurbishment costs carefully, we were able to structure a facility that worked for all parties. We’re pleased to support another borrower looking to improve housing stock and create long-term value.”