Speed and Certainty: The Bridging Loan Solution for the UK Property Auction Market
Written by Michael Minnie
Purchasing auction properties is a smart strategy for property investors looking to build and diversify their portfolios, and recent data revealed that residential auctions are up over 4% from last year and sales values are up by 14%.
The allure of a high-yield property at a potential discount can be quite appealing, but the UK property auction market comes with its own set of risks and rewards and operates at a far faster pace than traditional property deals.
Given that most auction purchases need to be completed in 28 days, brokers who have a knowledge base of the auction process, including knowing what type of funding is best suited for their client, and which specialist lender can provide that funding with speed and ease.
At LendInvest, we can support auction purchases as soon as the gavel drops with mobile-friendly enquiry forms that can be completed in as little as 90 seconds and then access to a team of underwriters and experts who will quickly get your case approved.
For investors who want to plan out their entire project, our Bridge-to-Let options allow for a seamless transition onto one of our BTLs with a DiP in place when applying for a bridging loan.
Additionally, we offer competitive Refurbishment GDV products, supplying the funds to purchase and carry out necessary or value-added works.
Start-to-finish certainty on auction purchases
Case Study: £1.387 million funded for London auction property
Knowing we can offer start-to-finish certainty with auction purchases, a broker approached one of our bridging specialists to secure funding within the tight deadline. Their client, a property investor with a small portfolio, wanted to purchase a semi-detached property in a prime residential area in the NW8 postcode of London.
After purchase, the client wanted to carry out light refurbishment and then refinance on a long-term basis as an investment property.
The team began work immediately, preparing the case, and we were able to loan £1.387 million at 75% LTV. The case was completed 7 days after legal undertaking was given, highlighting our commitment to speed and efficiency.
How we Cut the Complex on auction purchases:
- AVMs up to 75% LTV and Dual Representation
- Financing for refurbishments
- Easily transition on to our BTL products
If you have clients looking to take on the UK property auction market, contact one of our dedicated bridging specialists today or start your quote with one of our online calculators!