Area: Penzance, Cornwall
Loan amount: £295k
We were contacted by our clients who had won a property at auction in the seaside town of Penzance in Cornwall. Their plan was to fully renovate the property and then sell it on at profit. Part of the conditions of the auction required completion of purchase to be made within 14 days, and at the time of the auctions close they did not have the full and necessary funds to complete the purchase as they had not sold on some assets they had in time.
Having used One 77 in the past for a standard property purchase, they contacted us to see if our Specialist Lending department could assist. Following a full fact find of the clients’ circumstances, and in order to complete the loan we used one of the client’s additional investment properties as additional security. This then meant that the overall loan to value (LTV) of the deal could therefore be reduced, meaning we could effectively fund the purchase at 100%.
In essence this allowed our clients to complete the purchase and hold back the funds they needed for the renovation to take place. Upon completion of the renovation work the property was listed on the market and sold. This led the clients to redeem the loan and make a significant profit which they were to use towards their next project.
Are you looking for auction finance? For our full range of specialist finance options and prducts, including our reknowned bridging loan offering, please call our Specialist Lending team on 01249 474956.