Auction Property Finance Needed After the Deposit Was Paid

deposit was paid

Loan amount:

£215,000

Property Value:

£290,000

LTV:

75%

Initial circumstance

A new broker introduced us to a client of theirs who had bought a property in Dartford via a property auction. The property was rundown, and the client was looking to renovate their new asset before re-selling it for a higher value.

Having already paid the deposit, they needed the funds to complete and refurbish – as their original plans to complete were delayed.

They were also at risk of losing their deposit as well as the investment opportunity.

Our Solutions

The dedicated underwriter assigned to the case was able to send out the terms on the same day as the enquiry, as well as issue a valuation – by using our trusted panel of valuers. We received the report within three days.

The valuation came out lower than what was expected.

The client was able to cover the difference in funds. This allowed us to re-issue terms instantly to meet the 75% of the 180-day valuation.

Refurbishment plans were in place with building quotes and a solid plan.

Funds were released promptly, and the client did not lose their deposit or the property. We also tailored their bridging loan around their renovation works, providing them with enough time to complete their refurbishment works and find a buyer, without feeling pressured for time.

Benefits

Market Financial Solutions were able to issue terms from day one, and our strong relationships with our valuation panel means that we trust our valuers to respond quickly in cases with such a restricted timeframe.

There was no risk of losing their deposit as we gave our word, and the loan was tailored with the refurbishment in mind.

We do not charge Early Repayment Charges, just a minimum term of three months. Meaning, should works complete earlier than expected, the borrower can work to the timeframe that suits their needs. Both broker and borrower were very happy with the service we provided.

FAQs

Where can I register with you as a broker?

You can register with us easily through our dedicated broker registration page. Once registered, you will receive access to our broker product guide and our team will be on hand to discuss any cases you may have. For urgent enquiries, you can also contact us directly by phone +44 (0)20 7060 1234 or live chat to get a faster response.

How quickly can you provide auction finance?

We understand the time-sensitive nature of auction purchases, so we move fast. Our experienced team can provide a decision in principle in hours and release funds within days when needed. This means you can meet tight auction deadlines and secure the property without delay.

What do you need to issue funds quickly?

To release funds quickly, we need key information upfront including property details, borrower background, and a clear repayment strategy. Early access to any relevant documents you might have already like valuation reports, legal documentation, and any third-party consents will also help us expedite the process. Our streamlined internal processes and in-house credit team mean we are equipped to move from enquiry to completion very quickly.

What is the role of unoccupied properties in the housing market?

Unoccupied properties in need of refurbishment play a unique role in the housing market, often representing untapped potential for investors and developers. They can contribute to housing shortages if left unused, but with the right investment and refurbishment, they help bring new stock to market and support regeneration in key areas. We work with clients looking to unlock value in these assets, providing funding solutions even when the property lacks immediate rental income or requires significant work.