A stalling renovation project which was funded by Roma Finance after being purchased at auction has been sold for a significant profit.
The client, a property developer and builder, was let down by another lender who failed to see the project’s potential, but after a review with Roma the case went ahead.
The property, purchased for £485,000, was given funding of £360,000 within seven days to meet the required deadline, while the clinet had already contributed £150,000 of his own money into the property.
The flats sold for £745,000, making the developer a significant return and securing the exit from the bridging loan.
Scott Marshall, director at Roma Finance, said: “This is a case that wouldn’t have happened had we not taken the time to get to know the applicant and the property inside out.
“Due to a simple technicality, many banks wouldn’t lend but by meeting the client and reviewing the potential value after a refurbishment, we were absolutely convinced this was a genuine case worth financing.
“With the property and auction markets performing so well, this case highlights that there are real opportunities in the auction rooms, but it often takes a lender with specialist knowledge and underwriting expertise to be able to provide the finance.
“The client is now planning further projects and we look forward to doing business with him and the broker again.”
The property contained two flats, one vacant and one with a tenant in.
After completion the tenant was served notice, and both flats were refurbished for £30,000. As work progressed, the client requested another £50,000 to aid business cash flow and get the flats ready for sale.
The broker was paid commission on both fundings by Roma Finance.