Bridging, Six-Month Rules and Down-Valuations

Finance, lenders and preparing properly for the surveyor

BRRR depends on two things beginners rarely take seriously enough: the finance that carries you from purchase to refinance, and the valuation that decides how much you get back. This book explains both. It separates the two kinds of finance in a BRRR deal and the jobs they do, and explains the six-month rule, under which many term lenders will only lend against the price you paid, not the improved value, until you have owned the property for six months. It covers the permissions to secure before work starts, because unconsented improvements can stop a lender refinancing, and the bridging small print that decides your money. You will see the insurance and legal duties of a property that spends its most vulnerable months as a building site, and how structure and the tax treatment of costs affect what you keep. A pre-surveyor and compliance checklist prepares you for the valuation, and the final chapter sets out plainly what a down-valuation costs. Next in this series: “The BRRR Machine”.

What’s inside

• The finance and legal framework of BRRR, in plain English
• Permissions, licensing and planning before you lift a hammer
• The contracts, and the small print that decides your money
• Insurance, safety and your legal duties during works
• Tax treatment and choosing the right structure
• Your pre-surveyor and compliance checklist
• Getting this wrong: what a down-valuation actually costs

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.