Auction Property Purchase the Easy Way Through Fast and Competitive Bridging Finance

According to the latest batch of facts and figures released by the residential bridging loan sector, the number of properties being bought and sold at auction is at an all-time high.  This is hardly surprising as the industry is now boasting record low borrowing costs with available interest rates starting from just 0.46%, on LTV ratios up to 50%.

UK Property Finance Ltd is widely recognized as one of the most competitive bridging providers in the industry, offering a superb range of highly streamlined lending products with a level of customer service that is without equal.  As fully established and convincingly intelligent bridging specialist, the team behind the service simply refuse to be beaten on value for money and client satisfaction.

However, there are a number of key factors that need to be taken into consideration and appropriately dealt with when purchasing a property at auction and by far, the most pressing of these issues is that of speed.  The vast majority of auction properties are typically available at exceptionally low prices and, with this in mind, a tight deadline is often an absolute certainty when a buyer is looking to take advantage of a golden opportunity.  This means that a suitable funding solution needs to be put into place quickly in order to secure a purchase, and with most conventional types of property finance, the time required to set up an appropriate borrowing facility simply does not exist.

This is precisely where a competitive bridging finance option can be of invaluable service.  Providing you work with an expert provider, such as UK Property Finance Ltd, funds can be secured and released in a matter of days which affords the borrower plenty of time to find a suitable long-term product such as a conventional mortgage product.

Another advantage associated with a bridging loan is flexibility – particularly in terms of the various property types and real estate that can be used as security.  With bridging finance, the borrower can secure a short-term loan using a residential dwelling, a Buy-to-Let property, a business premises or a valuable plot of land.  As long as the lender is satisfied that the real estate in question is of suitable worth, the development finance can easily be made available.

Matthew Tooth, chief commercial office at LendInvest, has the following advice for those seeking to invest in property sold at auction:

“First, advise a client to choose a solicitor that has experience of dealing with auction financing and/or bridging loans that require delivery within a tight timeframe.   The buyer should fulfil everything expected of them on time, too, and (sic) this can range from paying valuation or legal fees and filling out forms to answering enquiries on the purchase.”

“If the period for completion expires, the vendor can give notice; failing to complete before that notice period ends can result in losing the deposit and facing legal fees and compulsion to complete.”

Of course, there are other factors to be taken into consideration.  Firstly, prospective buyers should always ensure that they remain within budget whilst never ignoring the numerous costs that will added to the initial purchase price.  A 10% deposit is usually mandatory on the day of purchase and there are additional costs which may be required in order to make a property habitable and fit for purpose before a long-term finance provider will even look at an application for a mortgage.

However, as long as a potential buyer carries out the relevant homework whilst seeking expert advice and input from a qualified professional, most pitfalls can be avoided with ease and a profitable investment opportunity can easily be taken advantage of. –