Purchase and refurbish of a £850,000 3-bed property in London

Funded:

£895,000

Location:

South East

Property Type:

Residential

Funding:

Bridging Loan, Refurbishment Loan

The Project

The Borrower approached us for funds to purchase and refurbish a £850,000 3-bed property in London. The refurb also included a loft conversion.

The Approach

A valuation report confirmed the project’s profitability. We structured the loan with a gross amount of £894,000, an initial release of £591,000 and build costs of £169,000. The loan completed with an LTV of 69% and a LTGDV of 74.5%.

The Outcome

Completing in late July, we provided a 12-month loan term. This allowed the client to purchase the property and commence refurbishment immediately – aiming for a GDV of £1.2 million.

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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