Securing finance for an auction purchase facing delays

Securing finance for an auction purchase facing delays

Article by David Gissing Specialist Finance Adviser

What was the situation?

My business owning client was looking to obtain a bridge to purchase a property at auction which was in need of light refurbishment. This was their first refurb project in their own right, but they already had refurb experience from their previous employment.

The property being purchased was for buy to let (BTL) purposes, to be added to their current portfolio. The client required a loan of £240,000 and due to the nature of an auction, needed to complete within 28 days.

What was the issue?

Unfortunately, despite trying to avoid any hold-ups due to auction time pressures, the property was down-valued which caused a small delay in the tight time frame. The down valuation then had a knock-on effect by impacting the loan size offered by the lender.

What was the process?

Due to the down valuation, I had to re-work the figures to make the transaction viable. Aware of time pressures, I moved quickly and efficiently to communicate with the lender and have new terms issued that would ideally suit the clients needs.

With auction purchases, it’s important to stay in control of all parties of the transaction as the application progresses. As such, I aided solicitors with outstanding enquiries and ensured we were available and on hand for the client and lender at all times. Even more so because my client could only communicate out of hours and over weekends due to international time zones when travelling.

What was the solution?

With previous experience in auction purchases and pre-empting possible delays, I was able to ensure we met the deadline and were proactive rather than reactive. Using long-standing contacts, the lender prioritised the underwriting of the case and expeditated external party correspondence.

I was delighted to secure almost £200,000 on a 12 month term which allowed the client to win and complete the auction purchase.

As a result the client was able to start their refurbishment project and continue building a portfolio. Myself and LDN Finance will continue to support the growth of this client as a portfolio landlord.

Lending solutions with LDN Finance

Are you looking for specialist property finance for a bespoke purchase and would like some advice about? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates. 

Get in touch with us to organise an initial consultation.

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Our happy clients

Excellent and outstanding professional service from start to finish. From offering as many options as possible, to explaining to me very quickly what the benefits are and what I should really be thinking about moving forward. Thoroughly recommend.

Mr. M

July 2021

5 Stars! The LDN team supported us purchasing our family home, without their support and as an expat it would have been very difficult to obtain our new home in the UK. I would totally recommended them.

Mr. S

August 2021

Johnny Martin held our hands through the entire process calmly and professionally. Brilliant service, efficient and swift in response to everything. He made the entire journey uncomplicated even when the bank made it complicated. Highly recommended.

Mr. H

July 2021

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