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How fast can I move from bridging to btl


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I am buying a property (repossession) which h is in imacculate condition and don’t need to carry out any renovation works   

I am getting 30% BMV and can be let immediately. 

I am using Bridging to buy and then want to remortgage ASAP and pull my money out at market value. 

I can not get a refurbishment bridge that moves to a BTL since I only have one shower screen to fit and that’s about it?

Any advice on how to do this best  would be highly appreciated.

Thank you as always for sharing your valuable knowledge

 

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Hi Nicolas,

By the sound of it, you don't need a refurbishment bridge anyway. If you take a normal bridge, you can remortgage onto a BTL deal pretty much straightaway. Granted, not every BTL lender would allow remortgaging at market value immediately, but some would. 

When you take a bridge, you'll be asked about your exit strategy (in this case a BTL mortgage), so both options will have to be checked before jumping into the bridge. A broker will go through it all with you: the property particulars, the finances necessary, your personal situation, the expected rental income, etc. 

Because of all the details needed to give proper advice, we can't really help you much more on this platform.

 

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if you have not added value the vast majority of the time it will be valued at the purchase price. The fact you bought it BMV will terrify most lenders (the transaction can get reversed) and that's if it was BMV! Sometimes the strategy does work but most of the time it doesn't.

 

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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How much value can you add to a tiny flat in Mayfair that has just been revamped high spec.  You buy the location really... property is being bought 162k less than 5 years ago.  Thank you as ever for your feedback. It is what it is I guess .  I am sure I ll figure something it out. 

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How tiny Nicholas and are you buying personally or within a limited company? Also, re you comparing the purchase price to its value 5 years ago?

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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I think that this is a subject that is not covered enough on here, and because of that lack of discussion could give false hope to new property investors. As Simon pointed out, just because you purchased at well below market value, there is absolutely no guarantee that you can then re-mortgage at "market value" and get most of your money back out.

After all, what is "market value"? The price someone is willing to pay for an item. The fact that in your case it might have been 30% below what others are paying for different properties in the same area doesn't really alter the fact that YOU just set the market value for your property at 30% below all the others! And so the valuer could well take YOUR market value as her/his base.

I think that not enough is said about having to convince a valuer that the property you are presenting to him/her is substantially more valuable than the one you purchased a few weeks ago...

We are currently refurbishing a property where our exit strategy depends on just such an increased valuation, and are rapidly nearing squeaky bum time when we see if we can convince a valuer that it is a much better property.

We are hoping that our strategy of sitting her/him down with a cup of tea/coffee/strong drink and showing the slideshow of around 2000 images of the renovation progress (thus far) might do the trick....... 

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