Bridge-to-Let! | Purchasing my Investment Property! How I found the process!! The good and the Bad!

Bridge-to-let! the good and the bad! My view from going through the process! 

Intro:

I went through the bridge-to-let process and it was an eye opener!! So I’m going to go through 3 things that where good and 3 things that were bad about the process!

Good things!:

1. It has enabled me to to purchase a property via lender funding that would I would not be able to purchase via a standard buy-to-let, as I don't have the cash to buy as a cash buyer!
2. Gives you a set date to get the refurb done by - gives you certainty and some thing to aim for.
3. Certainty - Exit strategy - locked in with a lender, in my case I had the competitive pre 'Liz Truss' mortgage rates.

Bonus Point:

Its helped me to implant my project management skills learned in day job and apply them to my personal property journey!

Bad Things!:

1. its expensive borrowing, rates and additional solicitors fees as it’s 2 stage includes 2 sets of fees, a directors loan agreement to be drafted, you may have to pay for independent legal advice, higher cost for valuations to be done if purchasing commercial property which applies when purchasing a commercial property no matter if you use a bridge to let or not.
2. If the completion date slips it could encroach into your refurbishment project time which adds pressure to complete the project (be careful not to cut corners, you have to have the right team around you…
3. If you don't have an exist plan from the start that can cause stress to get of the high rates. but then you can test the market once your build is almost got to the end point and get competitive rates from other lenders in real time. Take advantage of current market rates. The opposite of the Liz Truss situation could happen if your not locked in you can take advantage of the market rates.

Bonus point:

Costly! Paying for x2 sets os solicitors fees!

Outro:

I’m a big advocate for doing your own research so please do just that and look this up yourself!