Our long-standing client, an experienced landlord, approached us looking for fast, reliable funding to secure a 4-bedroom property at auction. Working to a tight deadline, we acted quickly to deliver a streamlined solution that helped secure the purchase on time.
At a glance:
- A seasoned landlord with a portfolio of 20+ properties
- Purchasing a 4-bed property at auction
- Looking for a day-one loan to meet the auction deadline
The Case:
Our returning client, a highly experienced landlord with over 20 properties, approached us for support with financing an auction purchase.
Their business model is well-established: acquire undervalued properties at auction, carry out extensive refurbishments using their team of trusted builders, and refinance on a buy to let mortgage at 75–80% LTV based on the new market value. The capital released is then reinvested in their next project. This approach has enabled them to scale their portfolio significantly over the past 5 years.
This time, the property was a 4-bedroom flat needing substantial refurbishment. It was not in a lettable condition at the time of purchase, making it unsuitable for standard mortgage finance. Our client secured the property at a traditional auction with a strict 28-day completion deadline, another factor that ruled out standard mortgage options.
The Challenge:
Our client’s main objective was to secure the highest possible day-one loan to minimise their deposit and preserve capital for refurbishment works. Given the property’s condition and the tight auction timeline, bridging finance was the only viable route.
The key challenge was ensuring the finance process moved swiftly and efficiently. Timing was critical to meet the auction deadline and ensure our client could let the property, generate income, and move on to their next investment once the refinance was complete.
The Solution:
With extensive experience in auction purchases and bridging finance, we knew that lender service levels would be more important than headline rates. We selected a lender we regularly work with on auction purchase cases, as it’s known for its speed and reliability in these scenarios.
The lender issued a formal offer within 4 days of submission. We instructed the valuation ourselves to avoid delays, and the offer was conditioned on the valuation, streamlining the process further. Solicitors were instructed early, giving them maximum time to complete the conveyancing and meet the auction deadline.
Thanks to our established process and proactive approach, the deal was completed smoothly and on time. Our client was able to refinance post-refurbishment and release equity to fund their next acquisition.
The Finance:
Property value: £342,500
Loan amount: £274,000
LTV: 80%
Bridging interest rate: 8.40% fixed for 1 year
Monthly payment: £0 (rolled-up interest, repaid on settlement)
Predicted monthly rental income: £3,000 (post-works)
Predicted gross yield: 6.5% (based on the GDV)
Lender arrangement fee: £5,480
Next steps
If you’re looking to refinance a recently refurbished property or release equity for your next investment, get in touch with our team to see how we can help.
