Bridging loans can be secured on property that is in a bad condition in order to raise the funds required to renovate the property. Property that is in a poor state of repair is often unsuitable as security for commercial mortgages, buy to let mortgages and residential mortgages. Once the renovation work is complete the property can be sold and the bridging loan repaid from the proceeds of the sale. Alternatively following the completion of the work the value of the property should have increased and should now be acceptable security to the more traditional lenders. Therefore the bridging loan can be repaid through refinancing and the property can be lived in or rented out.