In Q1 2018, the number of house sales falling through before completion reached 38.8% – the highest it has been in over a decade. Of these failed purchases, 46% were due to the seller either becoming frustrated by the time it was taking to finalise a sale or the buyer changing their mind.
These figures are a timely remainder of the significant issues that can be encountered when stuck in a delayed property chain. Indeed, as well as broken chains typically resulting in a property purchase collapsing, buyers and sellers will also lose thousands of pounds in legal costs and surveyor fees.
Over the past few weeks, CEO of Market Financial Solutions, Paresh Raja, has been speaking with property and finance titles offering his advice for those wanting to avoid chains and effectively manage the buying or selling process. You can read his expert insight in Love Property and Bridging & Commercial. Of all the advice offered, Paresh emphasises buyer and broker awareness of both mainstream and alternative finance options so that capital is always readily available to the buyer.
The competitive nature of the UK property market has made it vital for prospective homebuyers to understand the full range of finance options available to them. For existing homeowners, the ability to leverage their current property as an asset against which to secure a bridging loan can ensure they have access to the capital necessary to quickly complete on a new property transaction.
Market Financial Solutions has over a decade of experience delivering bridging solutions to those at risk of being stuck in a property chain. We understand that speed is of the essence, which is why our loans are typically issued within days of an enquiry being received – have a look below at some of our case studies from the past month.
MFS in Action
Recently, an existing broker approached MFS requiring short-term funding for a client seeking to expand their residential property portfolio. Having identified a suitable investment property, the client risked losing out on a fantastic opportunity in East London due to delays in the arrangement of long-term refinancing.
Upon receiving the case, MFS acted immediately, engaging with valuers and solicitors to ensure the client had access to the funds needed to complete on their property purchase. We ensured a valuation of the asset that the client proposed as a security for the loan was undertaken within days of instruction, and MFS issued a bridging loan to the client well ahead of the deadline. Having value the security asset at £1,300,000, an £850,000 loan was provided.
The client successfully received the MFS bridging loan in matter of days following the initial inquiry, and was able to quickly complete on the property purchase in East London. They were highly satisfied with the terms of our loan and agreed exit strategy, along with the speed and quality of the service delivered.
To find out how MFS can deliver a tailored loan specific to the needs of you or your clients, speak to a member of the MFS team today on +44 (0) 20 7060 1234, or email firstname.lastname@example.org