A savvy investor has utilised bridging finance to fund his auction purchase, finalising the balance with the standard 28 day to pay time frame.
The client purchased a farmhouse at auction in Taunton and was inevitably unable to secure main stream lending within the limited time frame. With proactive planning already in place, the client’s broker had approached BFS prior to auction day to discuss short term bridging using estimated figures if the property was secured.
The investor was able to secure the property on the day, and with funding in place, completed the sale within 28 days.
Becky Meyers of Bridging Finance Solutions explained: “Auction and bridging finance very often go hand in hand as was the case here. The buyer understood how the process worked in terms of an auction sale and bridging and approached BFS via the broker to guarantee the finance was ready and in place.
“Whilst the majority of auction houses have now made the transition to fully online this doesn’t in any way change the way in which the deal must be done, almost all auction houses require a ten per cent deposit on the day and payment in full within 28 days with no leeway. This agreement typifies how bridging finance can work when funds are needed in a short term framework.”
The client bowered £346,500 with an end value of the property £495,000 once fully renovated, providing a healthy return on investment. As ever the broker, the client and BFS worked together to achieve all objectives within the restricted timescales.