Bridging Finance Solutions has supported a local developer, providing bridging funding following an auction purchase, in a fast tracked five days.
The developer had acquired a three-storey semi-detached property in Wirral. With a provisional mortgage already in place, the client was experiencing ongoing delays and it soon became apparent that the mortgage may not be confirmed within the required 28 days.
The client was looking at a bridging loan of £107,250 having secured the property for £165,000. As the deadline date loomed, the client recognised the need to look at possible funding elsewhere.
Rebecca Myers of Bridging Finance Solutions explained: “The client is an experienced property professional and understands the challenges surrounding an auction purchase and so had made plans to have a provisional mortgage in place if they were successful on the day. Unfortunately, the lender couldn’t fulfil the necessary timescales stipulated under auction guidelines at which point they contacted us.
“We work with a number of auction houses across the country and are well versed in reacting quickly to secure this type of deal. Timescales of only five days where achieved due to the collaborative nature of the entire team. All parties engaged from day one including clients, broker, valuers and solicitor with consistent updates and an open line of communication.”
Purchase of the property was completed within the agreed timescales and the client will now include the property within their wider portfolio. The large semi-detached home is situated in a popular location within Wallasey and will continue to be let as three self-contained flats, each of which were ready for owner occupation upon purchase.
BFS’s development client added: “I have bridged with BFS (and other companies) before so knew how the process worked. I have had very positive experiences with BFS in the past and they are local, so was keen to work with them again.
“There where complications with the pre-agreed mortgage, largely due to Covid, and so I needed to source alternative funding quickly. All necessary searches etc had been completed with my solicitors and so it was a case of all parties working closely together to make it work under pressing timescales.
“I didn't quite expect the deal to be completed as quickly as it was and the money was released in five days, which was excellent and ahead of my completion date agreement with the auction house. A first class service from BFS yet again!”