Black & White Bridging has provided a £206,000 bridging finance facility to support the purchase and refurbishment of a six-bedroom detached property in Liverpool that had been vacant for more than ten years.
The 12-month facility gives the borrowers time to complete a full refurbishment before refinancing onto longer-term debt. The planned exit is a let and refinance, with the property expected to generate rental income once works are complete.
The property presented several complications at the point of purchase. It had been unoccupied for over a decade, with significant quantities of rubbish and personal belongings still inside. Remedial works required included the removal of damp plaster and rotten timber flooring. The house had also been extended since its original construction, increasing from four bedrooms to six across two storeys.
Despite its condition, the location offered good access to local amenities, schools, and public transport, supporting the borrowers' rental strategy.
The borrowers brought considerable experience to the project. With more than 20 years in the construction industry, they are undertaking the majority of the refurbishment works themselves and have committed around £100,000 of their own capital to the scheme. Works are already under way: all internal waste has been cleared, damp plaster and rotten flooring removed, and around half of the garden waste cleared from the front and rear.
Remaining works include specialist electrical and damp-proofing installations, landscaping, and clearance of the remaining external waste.
"While the property presented a number of challenges, the borrowers had the experience, capital and clear strategy required to take on the project," said Shahed Popat, relationship director at Black & White (pictured).
"The property's condition was significant, but it was only one part of the overall picture. With more than 20 years' construction experience, a substantial personal investment and a clear plan to refurbish, let and refinance the property, the borrowers demonstrated a strong understanding of how they could unlock its potential.
"This is exactly where specialist lending can add value. By understanding the people behind the transaction, as well as the property itself, we were able to structure a facility that gave the borrowers the funding they needed to get the project moving, and that will eventually provide much-needed accommodation to the area."
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