Purchase of a property which failed to sell at auction.

Deal Structure

70% LTV on Day 1 plus works funded in arrears

2% Arrangement Fee

Interest at 0.79% PCM, retained

No Exit Fee

No Additional Broker Fee

12 Months Term

Deal Summary

Our client agreed to purchase a residential property which had previously failed to sell at auction.

The purchase still had to be completed “under auction conditions”, and as such a 28 day deadline loomed.

It was a run-down residential property in Norfolk, in need of a rather significant upgrade and refurbishment, with the cost of works amounting to circa 25% of the purchase price. The client was used to carrying out such works to properties and would be project managing and dealing with the sub-contractors directly.

Whilst the fact that it failed to sell previously would have deterred some lenders, our panel includes lenders who are more willing & able to consider the proposal on its own merits, and take a commercial view.

The purchase was completed in good time, enabling the client to begin stripping out the property prior to undertaking the full refurbishment, before selling on the open market.