Lendhub supported the capital raise on a part-complete two-bedroom flat in South Kensington with promising potential. The property comprises a ground-floor, self-contained and converted two-bed flat within a six-storey end-terraced building. The flat was vacant with the refurbishment already underway at the time of funding.
The borrower required a bridging loan to provide equity for the purchase of an additional investment property. All refurbishment costs to be self-funded, with the bridging facility solely supporting the purchase.
Challenges
1. No Monitoring or Cost Verification
The borrower self-funded the refurbishment to date, which meant no previous requirement for monitoring or formal cost control. This placed greater emphasis on the strength of the documentation and borrower credibility.
2. Part-Complete Refurbishment at Underwrite
With works already underway and the borrower preferring to self-fund to completion, the deal presented several risks. However, the borrower’s structured refurbishment plan and progress to date provided confidence.
Solutions
- We obtained a comprehensive refurb pack, which included a scope of works, project directory, timeline, and building control engagement.
- Lendhub’s portfolio team committed to site visits throughout the build term to ensure project oversight, without appointing a third-party Monitoring Surveyor
Outcome
The borrower received a £478k Bridge facility at 44% LTV and 34% LTGDV, enabling the acquisition of a high-potential asset with a projected GDV of £1.4m. By backing a proven strategy in a prime location with conservative leverage, the borrower is well-positioned to refinance or exit profitably.
