Case Study: Bridging Loan for Auction Purchase in Bristol
The Property Scenario
An experienced property investor successfully secured a dilapidated residential property at a fast-paced Bristol auction. Due to strict auction rules, the buyer was legally bound to complete the transaction within a tight 28-day window. Because the asset lacked a functional kitchen and bathroom, traditional high-street mortgage lenders instantly flagged the property as unmortgageable, leaving the buyer needing rapid alternative funding to secure their capital deposit.
The Financial Structure
Our specialist advisory team instantly stepped in to structure a bespoke short-term facility. We arranged a first-charge bridging loan of £210,000, representing a conservative 70% Loan-to-Value (LTV) against the open market valuation. By leveraging our deep network of institutional partners, we secured a highly competitive monthly interest rate of 0.58% with fully retained interest to protect the client's monthly cash flow during the heavy refurbishment phase.
The Exit Strategy & Completion
The entire bridging facility was fully underwritten, approved, and funded within just 11 working days, easily clearing the auction deadline. The investor completed the structural renovations over a 6-month period. The pre-planned exit strategy was executed perfectly by transitioning the completed asset into a standard buy-to-let mortgage portfolio.
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