notice served on auction purchase, LS12
Our client had agreed to purchase a property at auction as she wanted to add value to her current portfolio. However, she had been served a notice to close the sale and was under increasing pressure for a quick turnaround of funds, otherwise she faced losing her deposit. The client required £45,500 to complete the purchase and make renovations to the property but was unable to opt for a buy-to-let mortgage as the property was deemed uninhabitable. As time was quickly running out, the client’s broker got in touch with us right away.
MT Finance solution
In just under two weeks, MT Finance provided a £45,500 bridging loan, based on 65% LTV of the open market value. As the loan was under £50,000- our standard rate of 0.95% applied. The client also opted for serviced interest over a 12-month term. There were no exit fees or ERCs, and no personal guarantees were required.
The client was able to complete on the auction purchase by the deadline, saving her deposit. What’s more, the 12-month term will give her enough time to add the necessary refurbishments and increase its value before refinancing out of our loan with a buy-to-let mortgage.