Bridging loan funds Hampshire buy-to-let purchase and refurbishment at 80% LTV

Loans Warehouse has completed its first bridging loan with Castle Trust Bank, funding the purchase and refurbishment of an investment property in Andover, Hampshire.

The client, an experienced builder and property investor, purchased a three-bedroom semi-detached house for £255,000 through his limited company. The property required significant improvement works and was not considered suitable for a conventional buy-to-let mortgage in its current condition.

Planned works include replacing the conservatory, installing a new kitchen and bathroom, and completing general redecoration. Once finished, the client intends to retain the property as a buy-to-let investment, with anticipated rental income of approximately £1,500 per month.

The client's priority was to maximise the funds available at day one while financing the refurbishment separately from his own resources. Castle Trust met that requirement by providing a high day-one advance without requiring the refurbishment budget to be retained or released through a drawdown facility.

Castle Trust structured the deal as a 12-month, first-charge bridging loan at 80% LTV, with a monthly interest rate of 0.73%. The facility delivered a net loan of more than £200,000 against the £255,000 purchase price.

Managed by Ryan Johnson, the case progressed from full application to completion within weeks, completing on 17 July, the contractual deadline for the purchase. Several outstanding legal requirements were resolved in the final hours before completion. Castle Trust approved the Certificate of Title and released funds at 12.20pm, allowing the purchase to complete that afternoon.

Following refurbishment, the client plans to refinance onto a longer-term buy-to-let mortgage. A mortgage offer with a retention was already in place, providing a clearly defined exit route once the works are complete. The property is expected to reach a post-works value of approximately £325,000.

"We're delighted to have completed our first bridging loan with Loans Warehouse," said Anna Lewis, commercial director property at Castle Trust Bank.

 "The teams worked together closely on this case to achieve swift completion, ensuring that any potential hurdles were anticipated well in advance. We look forward to working with Loans Warehouse in the future and helping many more of their clients."

"This was a fantastic first completion with Castle Trust and a great example of why having access to a broad lender panel is so important," said Vikki Edwards, head of bridging and development at Loans Warehouse. 

"The client needed to maximise the funds available on day one and wanted to complete the refurbishment using his own resources. Castle Trust understood the client's experience, the strength of the project and the proposed exit. Their team also worked quickly on the day of completion, approving the final documentation and releasing funds in time to meet the contractual deadline. We look forward to completing many more cases with them."