Our client was a private landlord with a portfolio of 8 properties. He was at auction looking to acquire another property and had made a successful bid of £81,000 for a 3 bedroom mid-terraced house in need of some light refurbishment.
He did not yet have finance in place to fund the purchase, and upon visiting the completions desk he discovered that he had only 14 days to available to arrange it. This is becoming increasingly common on properties sold as part of a repossession case, despite the fact that mainstream mortgage lenders are often unable to work within such short timescales. The client was concerned; he had assumed that he would have 28 days to find funding for his purchase. The auction house staff suggested that he visit the Auction Finance stand to see if we could help.
He approached our New Business Manager who took down his details and called a BDE at our head office. Our BDE ran through the necessary procedures whilst he was on the line, feeding the results back. Armed with this information our representative was then in a position to issue our client with an Auction Promise letter, agreeing his funding. The entire process took less than 10 minutes.
Within this short time period, the client was now secure in the knowledge that he would have the money to complete his purchase. He is now looking to purchase a building of concrete pre-fab construction at a forthcoming auction. Properties of this type are popular with landlords, often offering a good rental return in proportion to their purchase price. Unfortunately, they are not readily mortgageable by mainstream lenders. Once again, the client is looking to Auction Finance to provide him with the necessary capital to complete this new acquisition.