Hammer time

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BFS has once again supported a client in securing and developing an investment property purchased at auction.

The client had identified a three-bed bungalow in Greater Manchester to be sold via online auction. With a ceiling at which the client was prepared to reach, they approached BFS in advance to discuss the proposition.

Having agreed the terms of the loan, the client secured the property for £207,000, with plans to spend £8,000 of their own money to carry out a light refurb and sell for approximately £260,000.

A loan of 70% was secured for £144,900 over 12 months, using savings to make up the remainder of the hammer price and improvement costs.

Adam Wolstenholme, BDM at BFS commented: “This is a great example of how savvy clients are able to secure short term funding for an auction investment. The plan here is to make a healthy return of approximately 20%, building the cost of the loan into the wider financial projections.

“Unlike many short term lenders, we are happy to support lower value loans and are able to work with our clients through the planning process of bridging to ensure it’s the best move for them.”

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