A client recently contacted the Promise Money bridging team looking to convert a barn in to a bespoke new home. The client’s existing home was owned mortgage free and was worth £340,000. He had viewed the barn and loved it so much he actually went ahead and exchanged contracts to buy it. However it was uninhabitable and needed substantial work which would cost in the region of £290,000.
Initially he wanted to secure the money against his existing home however there were barriers linked to affordability & income so an alternative was needed. The Promise bridging team sourced a lender who was happy to lend providing the barn was wind and water-tight. Thankfully it was!
The lender took a legal charge over both the client’s home and the barn and advanced the full £290,000. The term was set at 12 months giving the client plenty of time to complete the work and sell his existing home which was his exit strategy for the bridging loan. This approach also meant that he could stay in his existing home whilst the barn work was being carried out so no rented accommodation costs to worry about.