Somo has announced that it has completed a £330,000 bridging loan in 18 days to fund the auction purchase of a seven-bedroom semi-detached property in Luton, with investors targeting a buy-to-let refinance once refurbishment is complete.
The borrowers secured the property for £440,000 at auction. Vacant and requiring a full refurbishment, the asset was not suitable for conventional mortgage financing in its current condition, making bridging the only viable route to meet the auction completion deadline.
Somo structured the deal through its Prime product, providing a first charge bridging loan at 75% loan-to-value over a 12-month term, at a rate of 0.82% per month. The transaction moved from application to completion within 18 days.
The case was assessed on the strength of the borrowers rather than the property's condition at the time of purchase. Their existing property experience and a defined refinance strategy supported the lending decision.
A valuation identified a gross development value of £525,000 following refurbishment, and the borrowers already held a decision in principle for a buy-to-let refinance at £330,000, providing a clear exit route from the outset.
With the purchase complete, the borrowers can now carry out their refurbishment programme and work towards refinancing onto a longer-term buy-to-let facility.
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
