Case Study: £330k to Turn Auction Potential into Profit in just 18 Days
We've just provided a £330,000 first charge bridging loan to support the purchase of a seven-bedroom semi-detached property in Luton.
The borrowers secured the house at auction for £440,000 and needed to move quickly to meet the auction deadline.
The deal completed in just 18 days.
The Challenge
The borrowers had successfully secured a substantial seven-bedroom semi-detached property in Luton at auction for £440,000, with plans to refurbish it before refinancing onto a long-term Buy-to-Let mortgage.
The property was vacant and required a full refurbishment, meaning conventional mortgage funding wasn’t suitable in its current condition. With an auction deadline to meet, speed mattered and the deal needed to move from application to completion without unnecessary delays.
The Deal
We provided a £330,000 first charge bridging loan at 75% LTV over a 12-month term through our Somo Prime product, with a rate of 0.82% pm.
The entire transaction completed in just 18 days, enabling the borrowers to secure the purchase and move ahead with their refurbishment plans.
Despite its current condition, the property offered considerable potential. The valuation identified a GDV of £525,000 following refurbishment, while the borrowers already had a Decision in Principle at £330,000 for Buy-to-Let refinance, providing a clear exit route.
The Outcome
By looking beyond the property's current condition and assessing the strength of the borrowers, their existing property experience and their refinance strategy, Somo was able to support the auction purchase in just 18 days from start to finish.
The borrowers can now complete their refurbishment programme and work towards refinancing the property onto a longer-term Buy-to-Let facility.
Why make bridging difficult?
This deal is a good example of what's possible when a case is judged on its merits, not just its condition. A vacant property with an auction deadline could easily have stalled with a lender who only looks at the here and now — but with a strong GDV, a clear refinance exit and experienced borrowers behind it, this one completed in 18 days flat.
If you've got a client facing a similar deadline, don't let the property's current condition put you off.
