CLICK HERE for FREE On-Demand training from Kevin Wright on how to level up your Property Finance game!
Mentoring Online Course Mastermind Blog About Contact Login Workshops Free Training Login

How to finance the purchase AND refurb

bridging finance May 03, 2016


Does bridging lend enough to cover the purchase price and the refurb cost? If not then surely you would have to put money in. Or would you have to buy BMV and borrow % of the market value instead of purchase price?


Most bridgers lend 70% of the purchase price, but a handful lend 70% of value. This is great if you are buying BMV, as you can use the discount towards your deposit, but to buy NMD you would need a discount of 30% +.

You would still need to pay for the refurb although some bridgers will lend you money to cover that too, but it is in staged payments in arrears, so you would still need some cash. It may be possible for you to borrow the reduced amount of cash you need privately and bridge the rest.

For example: I brokered a deal last year where the asking price was £350k, a £250k offer was accepted, which meant the bridger lent 95% of purchase price. The refurb cost was £50k, the borrower spent £25k of their own cash then the bridger lent another £25k to finish off the refurb. Once the refurb was done the bridger would have lent more if need to pay back the borrowers cash input, but in this case it was not needed.


You can learn more by:


50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.