Bridging
Money In Deal

Bridge to Let Calculator

Model bridge-to-let exit strategies and refinance options. Calculate capital recycling and cash-on-cash returns.

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Property Details

Phase 1: Bridging Loan

Phase 2: BTL Refinance

Bridge to Let Journey

1

Purchase

£250,000

2

Refurb

£30,000

3

Refinance

£300,000

4

Hold & Let

£1,400/mo

Bridging Phase

Bridge Loan

£0

75% LTV

Total Interest

£0

9 months

Bridging Fees

£0

Total Bridge Cost

£0

BTL Refinance

BTL Loan

£0

75% of £300,000

ICR

0.0%

Below requirement

Monthly Interest

£0

Interest only

Capital Recycling

Total Investment

£0

Deposit + refurb + costs

Cash Released

£0

On refinance

Money Left in Deal

£0

100.0% of investment

Capital Recycled

0.0%

Ongoing Returns

Monthly Cashflow

£0

Annual Cashflow

£0

Cash on Cash Return

0.0%

On money left in deal

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About the Bridge to Let Calculator

What it does and how it helps you

The Bridge to Let Calculator helps UK property investors model bridge-to-let exit strategies. Calculate capital recycling, refinance options, and ongoing cashflow when transitioning from bridging finance to a buy-to-let mortgage after refurbishment.

Two-phase cost modeling (bridge + BTL)
Capital recycling analysis
ICR stress test calculations
Monthly cashflow projections

How It Works

Understanding the calculation method

Bridge to let is a two-phase financing strategy: Phase 1: Bridging Finance - Purchase property with bridging loan (typically 70-80% LTV) - Complete refurbishment works (3-9 months typical) - Fund works through staged drawdown or upfront facility - Pay monthly bridging interest during refurb period Phase 2: BTL Refinance - Property revalued at higher post-refurb value - Take out buy-to-let mortgage (typically 75% of new value) - Use BTL proceeds to repay bridge loan - Generate monthly rental income going forward The calculator shows you how much capital you can recycle through refinancing, what cash will be left in the deal, and your ongoing cashflow from rental income after mortgage payments.

When to use this calculator

Use this calculator when planning value-add property investments where you intend to hold as a rental. It's ideal for properties requiring refurbishment where you want to refinance onto a long-term BTL mortgage rather than selling. Essential for understanding if the refinance will release enough capital and if the rent covers the mortgage.

Frequently Asked Questions

Common questions about this calculator

Bridge to let is a property investment strategy where you use short-term bridging finance to purchase and refurbish a property, then refinance onto a long-term buy-to-let mortgage once works are complete. This allows you to add value during the bridge period, then refinance at the higher value.
If you add sufficient value through refurbishment, you can often recycle 75-100% of your initial capital. For example: buy at £200k, spend £30k on refurb, refinance at £300k (75% LTV = £225k advance). This returns most of your £230k investment.
Interest Coverage Ratio (ICR) is the rental income divided by the mortgage interest cost. Most BTL lenders require 125-145% ICR, meaning the rent must be 25-45% higher than the mortgage payment. This ensures you can afford the mortgage even if interest rates rise.
Bridge to let projects typically take 6-12 months from purchase to BTL refinance. This includes 3-6 months for refurbishment, plus 2-3 months for tenant placement and BTL mortgage application. Plan for 9-12 months of bridging costs in your budget.
Many bridging lenders will fund up to 100% of refurbishment costs as part of the facility. This is typically drawn in staged payments as works are completed and inspected. Some lenders offer upfront release, while others require works to be certified before releasing funds.

Related Property Terms

Bridge to let UKCapital recycling propertyBTL refinance strategyRefurbishment bridgingInterest coverage ratioStaged drawdownBuy refurbish rentValue-add propertyBridge to BTL mortgageProperty refinancing UK