You may have heard us talking about our expertise in unregulated bridging recently. Our knowledgeable people, our dedicated unregulated underwriting team, our flexible, can-do approach to getting deals done and our robust and reliable source of funds giving you the confidence that we can complete when we say we will.
This commitment to supporting brokers has seen our unregulated business reach record volumes. That’s great. But we want more.
Below are a couple of recently completed heavy and light refurbishment cases, one for an experienced operator hoping to make a £1m profit, the other for a retired gentleman who just wanted to improve an investment property and sell it.
Whatever unregulated case you have, there are lots of great reasons to choose UTB.
To find out more, check out our Unregulated Product Guide Here, or call us on 020 3862 1002.
Heavy Refurbishment delivers £1m profit
An experienced property developer, with 14 successful schemes under their belt, wanted to borrow £960,000 towards the purchase of a £1.4m detached house in Borehamwood. The low price reflected the state of the property which was basically a stripped out shell.
Having completed the acquisition with our help, the developer was able to revise the planning consent to enable them to increase the size of the home to an impressive 4,500 square feet with an estimated GDV of £3.3m once the works were complete. UTB agreed to provide the £800,000 cost of works in four tranches with our exit, and a tidy £1m profit for the borrower, coming from the sale of the transformed house.
Light Refurbishment by an Inexperienced Improver
We provided a loan of £163,000 to a retired person who wished to repay an existing mortgage on a BTL investment property and carry out light refurbishment works. Although the borrower had no previous experience of refurbishing a property, we were comfortable that the works were light and that they would be using reputable contractors.
The property was vacant and had failed to sell at auction with the agents suggesting the condition of the property was putting off potential buyers at the £425,000 guide it should have achieved. The borrower decided to spend £30,000 replacing the kitchen, bathroom and flooring and to redecorate the property throughout. The works should add around £50,000 to the value, a modest increase but, more importantly, the refurbishment would make it much more saleable. The exit will come from the eventual sale of the improved property.