cross charge auction purchase, SE5
client’s circumstances
Our clients required ÂŁ316,000 to complete their auction purchase. They intended to buy the property as an investment, fix it up and sell it on the market against a higher value but they needed needed 100% of purchase price.
MT Finance solution
We used the client’s main residence by way of a second charge to increase funding and provided a £316,000 loan spread over both assets at 65% LTV, based on an open market value of both assets.
the benefits
Our short-term loan meant the clients were able to purchase the property by the proposed completion date- thus saving their deposit. What’s more, the 12-month term gave them plenty of time to carry out the works and significantly increase the value of the investment property, which they expected to fetch in the region of £450,000. The client will then sell the investment asset against the higher value, enabling them to repay the loan and enjoy a substantial profit.
