Together and Channel Finance Group have completed a £350,000 second charge bridging loan to fund refurbishment work across a landlord couple’s 40 property portfolio.
The landlords decided to carry out improvements after a number of tenancies ended, with the work intended to improve the properties’ EPC ratings and increase rental income.
Together completed the bridging loan in 18 hours from submission to completion. The facility was secured at 43% LTV against the couple’s five bedroom terraced home in Glasgow.
The lender used an automated valuation model rather than a full physical valuation, with the approach approved by underwriting within one hour. Dual legal representation, with Wilson McKendrick acting for both parties, also supported the completion timeframe.
The interest only bridging loan has a 12 month term. The borrowers have an agreement in principle to remortgage onto a residential mortgage within three to six months, following self funded improvements to their home, providing the planned exit from the facility.
Since completing the bridging loan, the landlords have requested funding for a further three property purchases as they look to expand their portfolio.
Martin Bloe, regional account manager for Scotland at Together, said: “This case highlights how experienced portfolio landlords throughout the UK are still very much invested in the Buy to Let market, with Scotland delivering significant yields.
“They need to be supported with finance that moves at the speed they need, with minimal fuss, and can be delivered with confidence.”
Carlos Velasquez, specialist finance and bridging manager at Channel Finance, said: “A case like this would normally take a minimum of seven to ten days to complete and would usually need a full valuation. The Together team saw that this was a relatively simple case and were able to move at a much quicker pace, collaborating and communicating with us throughout. Being able to use the same solicitors, Scottish legal experts Wilson McKendrick, for both sides of the transaction also helped with the speed and ease of the process.”
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