Loan provided to meet an urgent deadline for completion under auction terms

Funded:

£195,000

Location:

Midlands

Property Type:

Residential

Funding:

Bridging Loan, Refurbishment Loan

The Project

The purchase and refurbishment of a 2-bed house in Birmingham. We were originally approached to fund the conversion of a 2-bed house into 2 x 1-bed flats, however after the valuation report indicated that the venture was not profitable, we adapted and worked with the client to find a viable solution.

The Approach

We re-valued the property based on refurbishing the existing 2-bed house, which proved to be a more attractive option for both parties. We then expedited the process, providing a Gross Loan of £195,000 with a 73% LTV and 75% LTGDV.

The Outcome

Required to meet an urgent deadline for completion under auction terms, Seneca completed on the funding just one week from instructing Solicitors on the revised scheme. This quick turnaround allowed the client to proceed with the purchase and refurbishment promptly, and showcased our ability to deliver efficient and flexible financing solutions.

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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