Blog post
August 27, 2020

Case study: Lending 100% of the purchase price with additional security

Borrower: Experienced property investor 

Request: To borrow funds for an auction purchase and to raise capital on two new-builds the client already owns, to carry out works on the auction purchase

Loan amount: £780k  

LTV: Auction: 40%. Capital raise: 60%  

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An experienced investor approached us looking to complete two separate types of bridging finance at the same time for properties in Norfolk. 

The first, an auction purchase, which they had agreed a purchase price of £600,000, and the second a capital raise on two new-build homes they already owned. The capital raise was to provide funds for the works on the auction purchase property.

The exit strategy for both was the sale of the two-new build homes that would cover the total of both loans. 

We completed these two loans simultaneously for the client, as two transactions, giving them the benefit of lower interest rates and more flexibility while fully completing the purchase and works on their next project. 

If you want to contact our BDM for this region, Shane Wallace, about your next property investment, you can connect with him on LinkedIn, call him on +44 (0)77 4165 6555 or email him: [email protected]

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