LOAN SPOTLIGHT
Purchase Price: £75k
Loan: £87,844
Loan-To-Value: 76%
Loan Term: 9 Months
Refurb Costs: £30k
Value After Refurb: £140-£160k
The Property
A chance conversation with the vendor’s brother led to an off-market purchase of this 3 bed semi in Tyne & Wear. Husband and wife property developers spotted an opportunity to secure the property at below market value of £75k, modernise and refurb it to make a tidy profit. The vendor, a retired RAF veteran was keen to move out as quickly as possible into a local retirement home with his fellow veteran friends.
The pair planned to do a full refurb including new kitchen and bathroom, flooring, redecoration and electrical rewiring if needed. Works were expected to take 3 months costing £30k which would come out of the couple’s own funds.
The Assessment
The couple are experienced flippers having started developing properties just before lockdown. So far, they’ve successfully refurbished 4 properties whilst living in them gaining more and more confidence and experience each time.
Both are hands-on and enjoy getting stuck in and rolling their sleeves up. As luck would have it, the male half of this property duo is a qualified plumber and can call on his trade friends to do any additional work under mates rates. This fifth flip will be a new experience for the couple as it’s the first time the pair have renovated a property without living in it.
Our clients are determined and highly motivated as their dream is take on bigger and more valuable properties every time to eventually purchase their own large manor house in the countryside.
Although this is their first bridging loan, Apex have no concerns about lending to these clients and believe this is an ideal investment property in a strong market.
The Transformation
3 months later, the property is virtually unrecognisable and has been completed transformed as the below before and after photos of the new modernised kitchen demonstrate.
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Kitchen Before Kitchen After
The Result
With works complete in an extremely quick turnaround time, the property went on the market and sold at the top value of £160k, netting our ambitious couple a healthy gross profit of £55k.
Looking for a speedy loan transaction? An Apex Bridging loan could be the solution. Speak to one of our friendly team on 01509 345 007 or email enquiries@apexbridging.co.uk for more information.