Case Study · United Kingdom

Experienced developer needed short term loan to refurbish property

26 March 2021

Experienced developer needed short term loan to refurbish property

Experienced property developer in London required a short-term loan to refurbish a property and bring it to market standards. Rikvin Capital, the leading provider of short-term bridging loans in the UK, was able to quickly provide the required funds to allow the developer to begin the refurbishment process. With a streamlined application process and flexible repayment options, Rikvin Capital was able to provide the loan the developer needed to reach their investment goals and move forward with their project.

Problem

  • An experienced developer for properties in the U.K. needed financing to refurbish a landed property for resale.
  • Getting a traditional bank loan was taking too long.

Solution

  • The developer approached Rikvin Capital to provide a refurbishment loan.
  • After completing due diligence & underwriting, we disbursed £700k to the borrower to allow a quick refurbishment of the property.

Related: Read about when Rikvin Capital provided a developer with a bridge loan to complete the purchase of another property

  • Location: London, United Kingdom
  • Market Value: £1,342,800
  • Loan Amount: £ 697,000
  • Loan-to-Value: 50%
  • Duration of Loan: 8 Months
  • Payment Schedule: Monthly Interest Payment
  • Asset Type: Portfolio of Residential Properties
  • Completion Time: 10 Days

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FAQ

Can Rikvin Capital fund a UK property refurbishment?

Yes. The London case lent £697,000 against a £1.34 million residential portfolio (50% loan-to-value) in 10 days for a refurbishment programme. Short-term refurbishment financing is a core deal type for experienced developers between bank-loan cycles.

Do I need to draw the full loan upfront, or in stages as works progress?

We can release funds in tranches against agreed refurbishment milestones, which keeps your interest cost down. Alternatively, the full amount can be drawn upfront if the borrower has clear immediate use of capital across multiple sites.

How is the loan exited after refurbishment is complete?

Most commonly via either: long-term mortgage refinance against the upgraded property's new (higher) valuation, sale of the refurbished property, or refinance into a development-finance facility for the next project. The London developer here exited via sale and refinance after the works completed.