Bridge to let is an increasingly popular strategy for property investors. It allows you to purchase a property quickly using bridging finance, carry out refurbishment to add value, then refinance onto a buy-to-let mortgage — often at a higher valuation.
How It Works
- • Step 1: Purchase a property using a bridging loan (often below market value or at auction)
- • Step 2: Carry out refurbishment to increase the property's value
- • Step 3: Get the property revalued at its improved value
- • Step 4: Refinance onto a buy-to-let mortgage, repaying the bridge
Why Investors Use This Strategy
By purchasing below market value and adding value through refurbishment, investors can often refinance at a higher valuation — meaning less of their own capital is tied up in the deal. Some investors can recycle their deposit from project to project.