Incomplete Property Bridging Finance

Purchase of an incomplete property by using bridging finance

Spotted a bargain property that you cannot buy using a normal mortgage because it is deemed not to be habitable due to its condition?  Why miss out on this bargain?  Why not buy using bridging finance and then either refinance to a lower rate mortgage deal or sell the property at a profit once the work is complete?

Example:

Client has the opportunity to purchase a property at a significantly reduced price as the property requires renovation work. Due to mortgage lenders requiring a security property to be habitable at the time of the mortgage this can prohibit obtaining finance on this type of property. We can obtain an in principle offer from the mortgage company and use bridging finance to purchase the property and carry out the renovations required which will be in place until the property is complete. Once the property is finished you have the option to sell/refinance the property to a mortgage lender and repay the bridge leaving the equity gained in the property or in cash after sale.