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Financing a Flip
Property Case Studies
A property flip is where an investor acquires a property, then adds value through renovation and sells the property for a profit. Financing a flip is typically achieved with short term finance, or a bridging loan, as they can be obtained within a short period of time, allowing for works to begin quickly.
The Client
Our client required funding for the heavy refurbishment of a 3-bedroom bungalow in Northborough, Lincolnshire. The client intended to flip the property by reconfiguring the internal layout and adding an extension to the rear.
The Case
The client came across the opportunity in January 2021, during the UK’s second lockdown, when market conditions were particularly challenging. He needed to source finance quickly in order to secure the investment.
The Solution
Working closely with our lenders throughout the pandemic meant we knew who could move quickly under the circumstances. We secured a twelve-month bridging facility within four weeks that funded the purchase of the property and the cost of works.
The works were completed on time, in July 2021 and within budget. The property was sold in under twelve months with a greater GDV than previously anticipated, allowing the client to move on to the next project.
Looking to find out more about financing a flip or how much you could borrow with a bridging loan? Visit our bridging loan calculator, or speak to our property team.
