A £600,000 regulated bridging loan has secured the auction purchase of a Grade II listed five-bedroom detached property, bought by two buyers who had just six days to meet the completion deadline. The finance was crucial after they won the auction for £959,000 and the bank's swift processing allowed them to exchange contracts without delay.
The transaction involved securing the bridging finance against a first charge on the newly acquired property as well as a second charge on the borrowers' current home, which had an offer but wasn't yet at the exchange of contracts stage. This dual security approach is typical in bridging finance and provides lenders with added assurance.
Key to the rapid completion was the use of automated valuation models (AVMs) for both properties involved, eliminating the need for traditional physical valuations and significantly reducing processing time. JMW Solicitors LLP provided dual legal representation, acting for both the lender and borrower, which streamlined the legal aspects of the deal.
Rebwar Abdoullahi, business development manager at United Trust Bank, stressed the importance of speed and reliability in auction purchases where delays are simply not an option. Paige Dumpleton, senior finance broker at Clifton Private Finance, echoed this sentiment, highlighting that the clients needed a lender capable of acting swiftly and confidently in such a time-sensitive scenario.
This case highlights the operational demands of auction purchases which typically impose completion deadlines between 20 and 28 days from the auction date. Traditional mortgage processes often struggle to meet these tight timescales making bridging finance an increasingly popular solution for buyers seeking flexibility and speed in the UK property market.