Monday, January 27, 2020

Auction Finance Loan: £154,250


Case study: St Leonards-on-Sea (12 days from enquiry to loan)

The project completed: January 2020

The Client:

Experienced developers, with a number of successful buy-to-let developments to their name, were seeking fast access to fund an auction purchase.

The Property:

Situated in the popular location of St Leonard-on-Sea near Hastings, the three bedroom property was to be sold at auction and the developer planned a light refurbishment.

The Challenge:

The borrower was looking to purchase the property and was prepared to offer a 1st and 2nd charge against two of their existing buy-to-let developments as security for the purchase loan.  Funds for the property’s refurbishment were being provided by a third party. The exit of the loan was to be a refinance on the completion of the works.

The Solution:

Given the client’s excellent track record and a sound schedule of works, Mint Bridging were able to offer the funds for the purchase.  We provided a £154,250 bridging loan over a 6 month term to secure the auction purchase.  The third party investor was required to enter into a deed of subordination for their refurbishment loan.

The Outcome:

The purchase completed on time and subsequently the works were finished ahead of schedule.  The property has just been listed to let.





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