In this case our client was an experienced investor who bought the above property with the intention to either lease or sell it once some refurbishment had been carried out. She had been planning to complete using the capital from a standard 1st charge provided by a mainstream lender, but a combination of factors meant that the facility she had been in the process of arranging prior to her auction visit would not provide her with sufficient funds to cover the eventual purchase price.

She knew that she would not have time to arrange a new mortgage, and so her initial approach to us was for a sum that would allow her to make up the difference. As the client had a number of other properties in her portfolio that were not so highly geared, we agreed to advance the required £40,000 using one of these as a security.

All was well until two days before the client was due to complete, when the bank who had been providing the bulk of the necessary finance announced that they would not be in a position to make the advance for a further two weeks.

The client called us to see if we would be able to arrange a further £240,000 in time for her completion date. Of course, this was no problem. We treated this as a separate transaction secured against the auction property, and all the required funds were advanced over the following 2 days.