Arranging 74% Market Value Finance for a Distressed Auction Property

What was the situation?

Our client had purchased a substantial mixed-use property in North London at auction and required urgent refinancing after their original lender withdrew support. The property was in a poor state of repair, which meant many traditional lenders were unwilling to consider the case.

What was the issue?

With an agreed purchase price of £1.6 million, the client needed to secure funding covering 74% of the market value to avoid losing their deposit and facing contractual penalties. Time was critical, with less than three weeks remaining before completion was due. The property’s mixed-use status and vacant sections further complicated the lending proposition.

What was the process?

Leveraging our relationships with specialist lenders, we were able to secure a bridging loan of £1.184 million against the property. The facility provided sufficient funds to refinance the purchase, cover associated fees, and create a clear pathway to exit through refurbishment and development finance. Our team worked closely with all parties to ensure the loan completed within 12 working days.

What was the solution?

The client successfully completed the purchase and preserved their investment. The bridging finance gave them the time and flexibility to carry out essential refurbishment works and transition to long-term funding on improved terms once the property is stabilised.

Need help securing bridging finance? Our experts are on hand to assist. Call 020 3903 9875 to speak to an adviser, or use our online contact form.