Location: Greater London
Date: August 2021
Property Type: Degraded city property
Auction Finance Value: £342,000
After purchasing a Greater London property that had fallen into poor condition, a borrower turned to Velocity Bridging for assistance in providing the finance needed to complete the purchase.
We had to be confident that the borrower would increase the value to a point where we could be comfortably exited, and upon a property review, we felt that was the case.
We provided a gross loan of £342,000 representing 90% of the auction purchase price. This sits towards the higher range of auction finance that we are able to provide, with our minimum set at £100,000 and maximum at £500,000.
The property was on the verge of being derelict but the borrower invested significant funds into making the property a habitable and attractive place of residence. The borrower’s plan was always to purchase at auction at a low price, renovate the property and then refinance onto a BTL product. The property is now part of a growing rental portfolio in the area.