The solution came with bridging finance - a short-term bridging loan would finance the initial purchase while giving our clients ample time to split the titles and begin the necessary work on the BTL properties. 

We were able to secure a 70% LTV (Loan-to-Value) at £901K, spanning a 12-month term, with the ability to “roll-up” interest – this enabled our clients to free up cash flow for planning, renovation and refurbishment costs.

Ultimately, the main asset would be secured while they implement their plan. Then, they could refurbish the properties and obtain the planning permission to begin construction of the holiday lodges.

Additionally, we advised that the initial bridging loan could be later refinanced on a title-by-title basis, as follows:

• They could refinance the farmhouse and outbuildings into separate BTL mortgages once converted.
• Despite not including the third title of the land with planning permission, the broker was confident that a new valuation and refinance would be sufficient to repay the bridging loan.
• They could then raise development finance from the unencumbered land to fund the construction of their holiday business once the bridging loan was repaid from the two BTL mortgages.

Our access to suitable lenders and are packaging of a specific case can significantly affect its attractiveness to a lender – an established relationship with lenders, and a reputation within the industry, provides a certain level of trust. As a result, we can secure a deal that, otherwise, may be incredibly challenging to secure without specialist help.

In this case, we secured bridging finance for investment property quickly and reasonably priced. Our clients got their development dream financed without delay when they approached the right specialist broker.