The proceeds of sale will allow the bridging loan to be settled.
Alternatively BTL landlords will often carry out work on a property acquired at auction to ensure that it meets the requirements of a BTL mortgage lender. They will then seek to rent the property, whereupon the upgraded property with an increased value and an assured short-hold tenant in place becomes an attractive proposition to a long-term lender.
The relaxation of planning rules in recent years has seen another interesting trend featured by TV property shows - the conversion of empty office blocks or shops into residential accommodation under 'permitted development' rights.
Interestingly, the declining UK high street is actually facilitating the development of more residential units in the centre of towns and cities.
Although this is not great for shoppers, there can be no denying that it does relieve pressure on green and brownfield sites, while simultaneously recycling existing buildings with all the attendant benefits.
In summary then, there are many reasons why the short-term lending market has grown to the point where it is now estimated to be worth more than £4bn per annum. Property-focused television programmes have played an important role in fuelling a great British housing obsession.
These programmes have encouraged and informed in equal measure and we all owe a debt of gratitude to Mr Dublin and his colleagues for helping the bridging and wider housing market weather the storms that have hit, and emerge stronger on the other side.
Brian West is private client manager at Conrad Capital
