Refurb Bridging Loan Chester
Continuing our case study series, this explains how we provided a bridge loan to a borrower based in Hoole, near our offices in Chester.
Address of Property
Faulkner Street, Hoole, Chester, CH2
A former Butchers shop on the famous Faulkner Road in Hoole, the property had been vacant for over a year as buyers were put off by the amount of work needed to get it up to scratch again. Above the shop was a large three bedroom apartment which was also in need of modernisation and refurbishment. The owner of this property was unwilling to spend any money modernising the building, hence why interest in the property wasn’t forthcoming.
Our clients made an offer on the building and had a substantial deposit but still needed funds to complete the purchase and to refurbish the interior. Furthermore, they had to apply to Chester city council for a change of use for the shop to be converted into four small serviced offices as the Hoole area has a lack of office space. Each office space but only accommodate a maximum of two people but it was ideal for new or start-up businesses to acquire themselves a professional business address and there was already plenty of interest from the local community.
Furthermore, our borrowers also applied for planning permission to change the apartment from a large 3 bedroom apartment into two, two bedroom apartments, both of which were still substantial in size.
After planning was approved, we provided a bridging loan of £385,000 and a refurbishment loan of £135,000. After completion of the refurbishment, the building would value in the region of £895,000 presenting a significant profit for our borrowers. They borrowed the money over a 12 month term and as it was fully rolled up, it meant they didn’t have to make any capital repayments until they refinanced our loan, which they did in month 10 with a long term commercial mortgage with Nationwide.
If you want to know how you can refurbish property in Chester and make a profit when you sell or refinance, please get in touch with us today.
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