Lightning-fast auction purchase: £180,000 light refurbishment in Nottingham

Funded:

£180,000

Location:

Midlands

Property Type:

Residential

Funding:

Bridging Loan, Refurbishment Loan

Quick Summary:

Seneca Bridging provided an £180,000 gross facility (£116,000 day 1 completion funds plus a £40,000 build cost facility) for the acquisition and light refurbishment of a 3-bedroom semi-detached property in Nottingham. The direct deal completed in around 3 weeks from credit approval to completion.

Case Overview & Execution

  • Borrower Profile: An experienced landlord and developer with a existing portfolio valued near £2 million. The client operates a proven buy, refurbish, and retain model, adding value through targeted renovations before refinancing onto long-term term lending.

  • Expertise-Led Structuring: To streamline delivery, Relationship Director Sean Carbery leveraged the client’s extensive track record and the light nature of the works. For speed, desktop valuations were utilized instead of full physical surveys, and the borrower was permitted to self-certify works to draw down the £40,000 build facility over a 7-month period.

 

  • Security & Dual Representation: The facility is secured by a 1st charge over the purchase property, a corporate debenture, and personal guarantees from both directors. Stephensons Solicitors LLP acted under dual legal representation, ensuring efficient legal processing.

Drawing on 20 years of commercial lending expertise, Seneca delivers pragmatic, senior-led underwriting tailored to modern property developers.

Bridging Loans – Key Features

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  • Fast Decisions: Initial responses typically delivered within hours—perfect for time-sensitive situations like auction purchases.
  • Loan Size: £100,000 – £2.5 million.
  • Loan-to-Value (LTV): Up to 75% of the end value (Gross Development Value or market value), with flexibility available on a case-by-case basis.
  • Desktop valuations are available
  • Term: Usually up to 12 months, but occasionally longer if LTV can support it.
  • Interest Roll-Up: Interest can be “rolled up” and repaid at exit, easing cash-flow pressure during the loan term.
  • Interest Serviced: Interest can also be “serviced” allowing a larger day 1 cash drawdown (subject to serviceability).
  • Exit Strategy Required: Clear repayment strategy—such as sale or refinance—must be established at the outset.
  • Security: First legal charge on the property is required.
  • Transparent Costs: Arrangement fees typically start at 1%. No early repayment or exit fees, and no hidden admin charges.
  • Unregulated Product: these Bridging loans are not FCA-regulated, they are not available for owner-occupied residential properties.
Learn more about our Bridging Loans

Refurbishment Loans – Key Features

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  • Loan Size: From £100,000 to £2.5 million, with flexibility for more complex projects.
  • Term Length: Up to 18 months, giving you time to complete works and exit.
  • Market Leading Loan-to-Value (LTV): Up to 75% of post-works value (GDV) based on a 180-day VP valuation.
  • Interest: Rolled up and paid at the end of the term—preserving your working capital.
  • Security: Requires a first legal charge on the subject property.
  • Exit Strategy: Must be clear—either via refinance or sale post-refurb.
  • Transparent Fees: Arrangement and exit fees from 1%, no early repayment penalties, no unnecessary admin charges.
  • QS Monitoring Costs: Only for complex schemes (Seneca does not add internal monitoring fees), no QS required if refurb cost is sub £50k and works are non-structural.
  • Desktop Valuations Considered: Desktop valuations also considered if works are sub £50k (property value up to £300k).
  • Unregulated Product: these Bridging loans are not FCA-regulated, they are not available for owner-occupied residential properties.
Learn more about our Refurbishment Loans

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