Client generates a 6.25% return (in just 6 months) thanks to 85% Loan-to-Value fast funds.

 

The Scenario

With an interest to add to their existing buy-to-let portfolio, our clients committed to purchase a substantial terraced property under auction conditions.

The residential dwelling was sold with vacant possession and required refurbishments which would include new kitchen and bathroom suite installations, and upgrades to the floor coverings
and plasterwork. The clients were able to book previously employed contractors to commence work at the point of completion.

The client urgently required a lender who was able to offer a high contribution on day one, with intent to keep their own funds of approximately £30,000 available for the renovation works.

Providing the Solution

The clients had previously used bridging to fund other projects and approached their broker for advice on financing the new purchase. Specifically, the client would need the maximum loan to value available within a tight deadline.

The broker had a long-standing relationship with Apex and approached ready with full details on the case and requirements. Alongside the application, the broker offered the assurance that they would be supporting the client’s refinance exit strategy.

Apex agreed an offer in principle at 85% loan to value – a gross amount of £467,500 against a value of £550,000.

The Result

The client successfully used this offer from Apex over a 6-month term to complete their purchase. Renovation work began shortly after this and the dwelling was fully upgraded to a high standard throughout.

Subsequently, the client contacted the same introducing broker who was then able to arrange their refinance and exit, and updated Apex accordingly.

Their refinance with a term lender confirmed an enhanced value of £680,000, providing the client with an approximate return on investment at 6.25% over a 6-month timeframe.

Apex Comments

Tara Wiltshire:

“We have a trusted relationship with the introducer and knew that he would be able to work closely with all parties to facilitate the deal and arrange an exit. This makes a case so much simpler to underwrite and put us in a position where we could get comfortable with extending our maximum loan to value. 

The client was equally upfront and provided all the information we required without delay. It was a pleasure to work with them.”

 

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