Auction property acquired through bridging loan

Client circumstances

We were approached by a broker after a client of theirs won a property at auction. As can be typical of properties won at auction, their client required bridging finance as a longer-term mortgage was unavailable due to the need for development work to be undertaken.

While this particular property was bought as a three-storey commercial property, the client had permitted development rights to convert this into six residential flats.

In this instance, the client was seeking the bridging loan to pay for the property itself, with funds and plans already in place to complete the necessary development works.

Our solution

We were approached by a broker after a client of theirs won a property at auction. As can be typical of properties won at auction, their client required bridging finance as a longer-term mortgage was unavailable due to the need for development work to be undertaken.

While this particular property was bought as a three-storey commercial property, the client had permitted development rights to convert this into six residential flats.

In this instance, the client was seeking the bridging loan to pay for the property itself, with funds and plans already in place to complete the necessary development works.

The benefits

After successfully obtaining finance from KSEYE, the client was able to complete the auction purchase. Following the development work, due to be completed in Spring 2022, the properties will then be sold, exiting their bridging loan and setting themselves up for future property investment.

The flexible approach to lending that KSEYE takes benefitted the client, as the purchase of a commercial property but permission and intention to convert it to residential properties was something that a rigid approach would not have worked for.

Contact us today to discover how our fast and flexible approach to learning can benefit you or your client’s property finance needs.

Loan Amount

£339,500

Property Value

£485,000

LTV

75%

Rate

0.8% pm

Rates reflect products at the time the loan was completed