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The client owned three houses in Southend which he had bought to renovate and either sell at a profit or keep as rental investments. As he was nearing the completion of the works on one property, he saw a dilapidated house in shell condition which he intended to purchase as his next project.
His offer was accepted at £437,000, and he intended to spend £40,000 on renovations to increase the value to £575,000 at which point he would either sell or refinance on to a buy-to-let mortgage.
There were two other interested parties and most of his money was tied up in the other properties.
A loan amount of £503,000 was arranged within three weeks to cover the purchase price, Stamp Duty liability and full renovation costs, secured against both the new house and the one he had almost completed works on, which was valued at £725,000.
Disclaimer: This information is general in nature and does not constitute legal, tax or investment advice.