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.

MFS 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

MFS 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.

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