Sold! Hope Capital provides fast auction finance to secure deal for client
Completing on a property purchased at auction takes place over a 28-day timeframe, which often makes traditional finance, such as mortgages, ineffective. As a result, bridging finance is a solution that can meet this need and fund property auction purchases at speed.
We were recently approached by a client who had purchased a leasehold property in London at auction and needed to raise capital quickly to secure the premises.
This began as a fairly straightforward loan, however, it became more complicated once the valuation was completed, as a number of issues were identified including damp, structural defects, investigative works to the foundations were required, and so on. While the issues were not ultimately the responsibility of the client, they would have affected the subject property going forward.
We teamed up with Theo Kemp, a fantastic, established leading UK broker from Link Capital UK to work with the client to find a mutually agreeable resolution, which ensured the property could be purchased to meet the auction deadline and the necessary works could be completed post drawdown.
With the tight timescales imposed by the auction purchase, Theo and Hope Capital worked extremely hard to speed the process up and ensure all the necessary information was in place, so we could beat the clock and enable the client to complete the sale.
“The client was extremely impressed with how quickly and efficiently we could assess the project and provide funding. It was a pleasure working with Hope Capital, who pulled out all the stops and used their expertise to ensure funds were provided within the tight deadline.
This is a prime example of how working with the right lender, can deliver a solution, even when having to meet the tightest deadline. ”
Theo Kemp, Link Capital UK Ltd
We were able to offer the borrower a loan for £288,750 at 75% LTV. The client was extremely impressed with the quick, efficient and flexible service the Hope Capital team provided, so much so that they have decided to work with us again on another project they have in the pipeline.
While buying property at auction is a very attractive prospect for many property investors, as it often allows them to take advantage of properties offered at below market value, it requires the buyer to provide capital extremely quickly. We have worked with many brokers and borrowers in the past to ensure they can meet the mandatory ’28-day’ auction deadline and are delighted we could help this client secure their deal.
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