Our team has the skills to tackle a wide range of deal types, but one recent completion particularly demonstrated our ability to fund a residential auction purchase and refurbishment works, even when we are presented with significant hurdles.

The deal was introduced to our National Account Manager, Sam Lea, and Business Development Executive, Tom Gerrard, by Alec Witts of Ramsey & White. Terms were issued for an initial £315k day 1 to fund the auction purchase and a further £66k to be drawn down to facilitate the light refurbishment works. This facility was structured at 75% LTV over a 12-month term with a deducted interest payment, allowing for the refurbishment works involving an extension to be completed. With permitted development rights agreed, the borrower would have plenty of time to finish the works and sell the property.

Although the deal would typically fall within our light refurbishment criteria meaning an AVM could be used, this property was at auction below market value as the property had previously been repossessed. This meant we would require a full valuation of the property. To ensure we were able to meet the auction deadline the borrower opted to waiveminimum requirements allowing our Underwriter, Stacey Bradwell, to get straight to work, instructing solicitors and valuers as soon as possible after receiving the AIP. Paul Gibson of MPS Chartered Surveyors played a key role in maintaining momentum, working at pace to provide Stacey with an indicative report on the property as well as a QS desktop.   

This was a particularly challenging case for Stacey with several challenges to overcome. However, the inclusion of dual representation and title insurance on this deal drastically improved the timeline in which we were able to progress through legals.  As the property was technically in default, a letter of no consent was required from the previous lender in order to move forward with the deal and Alec worked with them and their solicitors’, streamlining communications and avoiding further delay. Laura Harrild of Glenville Walker was excellent, operating efficiently and impartially to move forward with both parties’ best interests in mind.

A final issue arose with a £20k fee imposed by the auction house that threatened to derail the deal however our brilliant solicitor, acting on behalf of the borrower, was able to step in, negotiating this fee down to £1,500 which helped get this deal over the line. Thanks to our brilliant team and partners we funded this deal extremely quickly to meet the 28-day auction deadline.