How To Get The Job Done With Bridging Finance
It’s the sport that can only be won whilst running against the clock: auction purchasing.
Every moment prior to making your auction purchase, to after you lift your hand to make the winning bid will count. Having the appropriate financial arrangements in place will mean that you’ll be able to confidently fund your purchase within the completion period.
When does Bridging Finance come into the mix?
Bridging finance has been tailor-made for auction purchasing as it’s a short-term loan which can be underwritten within the same day. If you’re looking to source quick capital for a live bidding purchase, bridging finance can be used to secure your property within the given time frame.
The Process: Auction Purchasing
Securing the purchase – The ideal time to secure bridging finance is prior to purchasing property through an auction.
If you’re interested in making an auction purchase we suggest you engage us as early as possible. Talk to one of our expert team members, tell them about the property you intend to purchase and what you’re prepared to pay for it.
We share the same enthusiasm for property as you – so we’ll be interested in hearing about your intentions for the new addition to your portfolio. We’ll do some underwriting checks, and subject to no red flags being raised, we can usually issue an Agreement In Principle (AIP) within a few hours of you initially giving us a call.
When purchasing a property through an auction, buyers will normally pay the deposit utilising their own capital. Bridging finance is then used to contribute to the final purchase cost.
Things to consider – Is the property set to be used for residential or commercial purposes? Is the property located in a desirable location? Will the property require large scale refurbishments? How will you repay the loan; i.e., through selling the property or acquiring a buy-to-let or commercial mortgage?
Refurbishment Finance Explained
At Seneca Bridging, we also offer finance for refurbishments and conversions so you can increase the value of your property. Refurbishment Finance is as it’s titled on the tin – it’s used to fund the refurbishment of residential and commercial property. This can range from complex housing projects to smaller scale developments.
One of our clients recently renovated the grade II listed Victoria Hotel, Wigan, Lancashire, into high specification apartments with full disabled access, lifts, and ground floor retail units.
The refurbishment needs of a property can often tip the scales, making the investment costlier than intended, which can weigh down on your finances. Our loan facility is designed to assist the purchase of auction property, reflecting upon any renovation needs and conversion build schedules.
We understand that schedules may not always go according to plan, that’s why our decision makers will be there to assist you from beginning to end.
At Seneca Bridging, we look at each case on its own merit, because no two opportunities are the same. Get in touch through our quick enquiry form, or by calling 01942 295 982.