Nottingham — security property
£153,750 Refurbishment Bridging Loan Completed by AF Credit in Just 14 Days.
When an experienced property developer identified a Victorian terrace in Nottingham being sold below market value, they needed finance that could move as quickly as they could. The property required extensive cosmetic refurbishment and wasn't suitable for a conventional mortgage. With the seller insisting on a fast completion, waiting several weeks for mainstream finance wasn't an option. AF Credit provided a £153,750 first charge refurbishment bridging loan, enabling the purchase to complete in just 14 days and allowing refurbishment works to begin immediately.
Nottingham — security property
| Item | Detail |
|---|---|
| Purchase Price | £205,000 |
| Loan Amount | £153,750 |
| Loan to Value | 75% |
| Property Type | Three-bedroom Victorian terrace |
| Location | Nottingham |
| Estimated GDV | £295,000 |
| Interest Rate | 0.79% per month |
| Completion Time | 14 days |
| Exit Strategy | Sale following refurbishment |
The borrower had found an attractive investment opportunity in Beeston, Nottingham.
Although the property was structurally sound, it required significant modernisation before it could achieve its full market value. The kitchen, bathroom, electrics and windows all needed replacing, together with complete internal redecoration.
The seller wanted certainty and speed.
Because the property required refurbishment, obtaining a traditional residential mortgage within the required timescale was unlikely. The borrower needed funding that could complete quickly without compromising the purchase.
After reviewing the property and the proposed refurbishment project, our underwriting team approved a refurbishment bridging loan secured by a first legal charge over the property.
A full RICS valuation confirmed the property's current market value at £205,000, together with an estimated post-refurbishment value of approximately £295,000 based on comparable sales in the area.
As the proposed works were entirely cosmetic, we structured the loan using a single drawdown, allowing the borrower to receive all funds on completion without the delays and additional costs associated with staged releases and monitoring surveyors.
The borrower funded the refurbishment works separately using their own capital, enabling the project to commence immediately after we released funds.
We released funds and completed the purchase in 14 days from the initial enquiry.
Within 48 hours of completion, contractors were on site carrying out the refurbishment programme.
Over the following eleven weeks the property underwent:
Once the works were completed, the property was marketed for sale. A buyer was secured within three weeks, with the property selling for £289,500. The bridging loan was repaid in full from the sale proceeds, allowing the borrower to successfully complete the project and realise the uplift in value created through the refurbishment.
Properties requiring refurbishment often present excellent investment opportunities, but they can also create challenges when obtaining traditional mortgage finance.
Many lenders are unwilling to lend on properties that require substantial improvement or are unlikely to complete within a seller's required timescale.
In this case, a refurbishment bridging loan from AF Credit allowed the borrower to:
Without short-term finance, the opportunity would likely have been lost.
FAQsYes.
AF Credit regularly provides refurbishment bridging loans for borrowers purchasing properties that require improvement before they can be sold, refinanced or let.
We can consider funding for projects involving:
Every application is assessed individually, taking into account the property, the borrower's experience and the proposed exit strategy.
We lend up to 75% LTV on light refurbishment projects. The LTV is assessed against the current market value of the property in its present condition — not the projected post-refurbishment GDV.
Where refurbishment works are cosmetic rather than structural, we release the full loan in a single drawdown at completion. There are no staged payments, no monitoring surveyor visits and no additional drawdown costs. The borrower funds the works from their own capital and repays the bridge from the eventual sale or refinance proceeds.
Light refurbishment covers cosmetic works — new kitchen, bathroom, decoration, flooring, replacement windows, rewiring — with no structural changes. Heavy refurbishment involves structural alterations, extensions, loft conversions or change of use. Our standard refurbishment bridging loan is structured as a single drawdown for light cosmetic works. Heavy refurbishment with staged drawdowns requires a different structure — contact us to discuss your project.
Yes. Where a RICS surveyor confirms a current market value above the purchase price, our underwriting team will assess the LTV against the confirmed market value. In this case both figures aligned at £205,000, but the post-refurbishment comparables clearly demonstrated the below-market acquisition.
These factors enabled us to complete the loan quickly while providing the borrower with the flexibility needed to carry out the refurbishment.
RelatedWhether you're purchasing a dated investment property, renovating a buy-to-let or buying below market value, AF Credit can provide fast refurbishment bridging loans across England and Wales. We lend on both light and heavy refurbishment projects and can provide same-day indicative terms for suitable applications.
Speak to our team todayDisclaimer: Case study details have been anonymised to protect client confidentiality. All lending is subject to underwriting and credit approval is not guaranteed. Any property used as security may be repossessed if you do not repay your loan within the agreed term. AF Credit acts solely as a lender and does not provide financial advice.