cross charge auction purchase, SE5
Our clients required £316,000 to complete their auction purchase. They intended to buy the property as an investment, fix it up and sell it on the market against a higher value but they needed needed 100% of purchase price.
MT Finance solution
We used the client’s main residence by way of a second charge to increase funding and provided a £316,000 loan spread over both assets at 65% LTV, based on an open market value of both assets.
Our short-term loan meant the clients were able to purchase the property by the proposed completion date- thus saving their deposit. What’s more, the 12-month term gave them plenty of time to carry out the works and significantly increase the value of the investment property, which they expected to fetch in the region of £450,000. The client will then sell the investment asset against the higher value, enabling them to repay the loan and enjoy a substantial profit.