United Trust Bank completes £1.2m heavy refurbishment bridging loan

By Bridging Loan Directory 27th February 2025

United Trust Bank (UTB) Bridging has completed a £1.2million unregulated heavy refurbishment loan to support a customer’s acquisition and renovation of a residential property in Berkhamsted, Hertfordshire.

The facility comprised an initial loan of £760,000, at a day one LTV of just under 65%, to enable the customer to complete the purchase.

Three additional tranches totaling £250,000 will finance the refurbishment works and the interest will be rolled up for the term of the loan.

The borrower, an experienced construction company, secured the property at below market value after a previously agreed sale fell through.

They subsequently negotiated directly with the vendor to agree a price subject to a quick sale and completion.

The facility enables the borrower to complete a full refurbishment of the property including demolishing and rebuilding the garage, installing new windows, overhauling the roof, updating plumbing and electrics, full interior refurbishment and redecoration, and landscaping.

Works are expected to take 6-9 months, and the 18-month loan term allows the borrower to properly market and sell the house once the works are complete.

The facility is being secured against two properties: the target property and a third party second charge over one of the business principal’s main residence.

The works will be completed by the borrower and the exit will be provided by the sale of the improved property which should have an estimated GDV of £1.6m and LTGDV of c61% once works are complete.

Gary Lomax, Key Account Manager – Bridging, United Trust Bank, commented:

“We were pleased to support the customers on this project and structure a competitive facility allowing them to transform the property, develop its full potential and maximise their investment.

Given their considerable expertise in construction, we are confident our customers will deliver an exceptional end product and achieve a successful and profitable sale.

UTB is committed to supporting experienced and inexperienced property developers with bespoke bridging solutions designed to help them seize opportunities and create outstanding homes.”