Case Study 1
In West Wales a 4 bed detached property with a detached 3 bed annexe on the same site both of which were in need of complete renovation but with obvious commercial potential. The property was uninhabitable so mainstream lenders would not consider. The property was purchased for £132,500 with a budget of £58,000 required to completely renovate the two properties.
Westgate was able to lend 80% of the true market value including the first tranche of renovation funding. The initial drawdown was £106,000 and the loan term was 9 months.
After 2 months the property was re-valued allowing a further renovation tranche to be released as the loan to value had dropped sufficiently. 2 months later another tranche was released with the final advance following a couple of months on after a further re-valuation.
The property was sold for £285,000 with the developer clearing £64,475 after all borrowing, legal and estate agents fees.
Case Study 2
2 bed terraced property purchased for £137,500 in Cardiff having been allowed to dilapidate over a 20 year period.
The purchaser supplied us with a renovation cost estimate of £28,000. This included re-wiring, a new central heating system plus general plumbing, new kitchen and bathroom, new windows and external work, guttering etc, plastering and re-decoration.
Westgate private finance lent the borrower 80% of the purchase price (the true market value) which was split 70% for the property purchase and the additional funds for renovation works. The total amount borrowed being £110,000.
With a gross development value of £215,000 the borrower made £35,200 after all fees (excluding estate agents selling commission).