LOAN SPOTLIGHT
Purchase Price: £80k
Loan: £102k
Loan-To-Value: 85%
Loan Term: 9 Months
Refurb Costs: £25,500
Value After Refurb: £180-£200k
The Property
Having let out this 3 bed mid-terrace house in Corby for 20 years, a kind father and experienced landlord decided to sell it below market value to his daughter, giving her a first step onto the property ladder.
The property was not in the best condition and needed a complete refurb including rewiring, a new kitchen, bathroom and boiler, flooring and redecoration throughout. The front door also needed to be moved from the side to the front. Works were estimated at around £25k and the first-time developer expected the refurb to be completed in 3-4 months.
The Assessment
Although this client was a first-time buyer and new to bridging, she had the full support of her seasoned property developer dad and was a business owner herself, successfully running and living above a Fish & Chip shop that she had previously refurbished.
We had zero concerns and felt this was low risk for Apex as the entrepreneur was investing her personal savings to cover the cost of the works and will be using trusted trades who worked on her shop refurb. She’s demonstrated her determination and is clearly not afraid of hard work with running her own business.
Once the works are complete, her plan is to sell the property and if there’s no interest, she’ll keep it on as a rental. Whether she sells or lets the house, we believe she’ll get a good return on her investment.
The Transformation
With the refurbishment now complete, the ex-rental has been transformed. Just compare the before and after photos showing the stunning new bathroom!
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Bathroom Before Bathroom After
The Result
After a complete modernisation of the 3-bed property, our client has sold the property for £16k, netting a gross profit of £62,500. Similar properties have rented between £900-£1,000pcm in the local area.
Want to get your first foot on the property ladder? An Apex Bridging loan could be the solution. Call one of our knowledgeable team on 01509 345 007 or send us an email: enquiries@apexbridging.co.uk.