Allsop auction finance – bridging finance for auctions

Vision Finance has recently structured a complex bridging loan for a property developer who purchased a large commercial property in a recent Allsop commercial auction.

At Vision Finance we work with property developers and property investors who regularly acquire properties at auctions and require auction finance. Given the completion period is typically 28 days, traditional finance from high street lenders will not be suitable – there is almost no chance a high street bank can complete a loan in under 28 days, and it is therefore far too risky to go down this route.

Bridging finance lenders will all claim to be able to complete a transaction in less than 2 weeks. However, the reality is that there are actually only very few lenders who we would fully trust to complete a transaction within 28 days, and not look to move the goal posts, or be unable to deal with legal issues in a timely manner. When purchasing property in an auction it is imperative to engage an advisor who can work under strict time lines, and will be wholly focussed in ensuring the transaction completes in the time available, as well as negotiating the best terms for borrowers.

At Vision Finance we are experts in structuring bridging finance to ensure we are getting the best outcome for the borrower. Recently we structured a bridging loan to be secured across the property being purchased in the auction, and additionally 3 other properties all owned by related party borrowers. The total loan size was £4.5m, giving the borrower 100% LTV (including stamp duty), and we negotiated a rate of 0.85% per month.

If you are contemplating buying a property at auction, and require third party finance, please do get in contact with us. We would typically advise buyers to contact us in advance of the auction, and we will discuss the proposed acquisition with relevant lenders, and obtain terms on your behalf before the date of the auction.

Please contact our auction experts on 0207 206 2500 or and we will be happy to discuss financing auction purchases with you.