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Have you ever sat in an auction room, keenly bidding on a house that is ripe for updating but realised with a shudder that you had not arranged your bridging finance? With only 28 days between a successful bid and completion there is no time to lose.

Bridging finance is ideal for such a situation. Once you have bid successfully at auction you should immediately contact CD Property Finance. We will consider which of our panel of bridging lenders to approach on your behalf giving consideration to all the circumstances including:

STATUS - Is the bridging loan to be full status, semi status or non status

LOAN TO VALUE - How much do you need to borrow - we can arrange up to 75% of open market value

LENDING TERMS - Rates start at about 1% per month depending on status and LTV. Interest can be added to the bridging loan.

LOAN PERIOD - You can borrow for up to 12 months - plenty of time to do your refurbishment work and sell or refinance

SEMI COMMERCIAL - Is there a commercial element to the property?

Short term finance can be used for a multitude of purposes as well as for auction purchases. These include:

Refinancing completed new builds to release cash for new projects.

Small development projects

Uninhabitable properties which mainstream lenders will not finance

Bridging of development site purchases pending property sales

Second charges

Commercial property purchases - typical maximum LTV 60%

Release of funds prior to probate

CASE STUDY

The client contacted CD Property Finance the day before the auction to ask if we could arrange a 70% LTV bridging loan on an uninhabitable property in London that they wished to bid for. The same day we obtained indicative terms from a lender which encouraged the borrower to make a successful auction bid. The lender, its valuer and the two firms of solicitors all worked to the 28 day deadline and the bridging loan completed satisfactorily. With planning permission now in place the client will refinance the short term loan.