Auction purchase in Yorkshire

Auction purchase in Yorkshire

Gross Loan Amount:

£200,000

Property Value:

£300,000

LTV:

67%

Initial Circumstance

We were approached via social media by a new client when they were looking to complete a commercial auction purchase.

They were able put down the initial deposit required once the lot was won, but needed finance in order to complete the purchase within the 28 day deadline imposed by the auction house.

The commercial property already had a high street bank leasing the space, so this was attractive to both the borrower and ourselves when looking at the situation surrounding the property

MFS Solution

As usual, a fast decision was made, with decision in principle and terms issued instantly, and the valuation instructed same day.

Essentially, for us, this was a simple bread and butter deal where we put a first charge on the property, ready for a long-term traditional finance solution to take over once applications had been processed and approved.

What also helped with this case is that we are able to not just look at the numbers, but also look at the client and their experience to help us make a decision. It was clear from the outset that we were working with an experienced property investor with a strong existing portfolio, which further strengthened their application.

The Benefits

The client got the bridging loan they needed to complete within the deadline – something a traditional lender was just not able to provide within the time.

The client has also found a lender they can trust, and as such has already returned to us for finance with their next auction purchase – another commercial property to add to their ever-growing portfolio.

 

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