Bridging loan case study
Auction Purchase Using A Regulated Bridging Loan
Discover how ABC Finance bridging loan experts helped this client secure a bridging loan for an unmortgageable property sold at auction.
The loan
Location
Sheffield
Capital raised
£360,000
How funds were spent
To purchase and refurbish an auctioned property
The request
The client came to us after finding a property at auction that he and his partner wanted to purchase as their forever home. They were looking to move in however the property was not mortgageable and needed significant renovations.
They owned their own residential property and an investment property which were both mortgaged and had very limited equity available. They had just listed the rental property for sale and were looking to raise money quickly.
They wanted to raise 100% of the purchase price and additional funds to cover the costs of a light refurbishment which included damp repair.
They would then repay the bridging loan with a residential mortgage and the proceeds from the sale of both their properties.
The solution
Upon reviewing and understanding the client’s asset and liabilities position, we knew we had to find a solution with a flexible lender. We presented the deal to a lender pre-auction and got the agreement in principle so we could submit the full application on the day that the clients won the auction.
Due to the shortfall, the lender also agreed that the clients parents property could be used as additional security to provide 100% of the purchase price and refurbishment costs.
As an added bonus, we were able to use AVM’s and add all fees to the loan and use dual representation legals.
0.84% interest rate per month, 1% lender arrangement fee.
Lee Hemming
Sales Director
Talk to Lee about bridging loans for auctioned properties
If you’d like to find out how ABC Finance can help you finance any type of bridging loan, get in touch with Lee today.
Lee Hemming is a specialist bridging loan advisor at ABC Finance with years of experience arranging the right finance solutions for our customers. Call, email or contact ABC Finance today to learn more.
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