Case Study – Auction Purchase – Commercial Investment

We received a call from a Mortgage Broker that we work closely with to introduce us to a client.

The client was considering purchasing a property at auction and had registered an interest. We worked with him to ensure his finances were ‘Auction Ready’ but on the day of the auction had decided not to bid.

Two weeks later he was contacted by the auction house who advised that the auction purchaser couldn’t complete the purchase, so our client decided to step in to take over the purchase.

Key Factors & Considerations

– 14 days to complete
– 100 mph with daily updates
– Specialist lender required
– Client was self-employed and earning less than the personal tax threshold
– Client had no solicitor in place
– Needed to engage accountant
– Unconfirmed exit strategy

We sourced a lender on day 1 who could finance the purchase on specialist auction finance and, unlike most personal lenders, looked at the case from a commercial investment standpoint and not on an affordability basis, thus overcoming the issue of the client having a relatively modest income.

Not only did we discuss our client’s imminent needs but we helped identify and plan an exit strategy too.

We sourced a solicitor, from our extensive bank of contacts, who was not only familiar with commercial property finance, which is absolutely essential, but could also work to the extremely tight 14-day completion date.

By day 2 we had submitted the application for approval.

We needed information from the client’s accountant, so, made a personal visit on behalf of the client, on day 3, to gather all the required information and arrange for the relevant forms to be signed.
By close of business on day 3 all the financial paperwork was with the solicitor.

We provided daily updates to both our client, the solicitor and lender and ensured that there was no delay in information being passed between all relevant parties.

The purchase was completed successfully and on time.

We have now also assisted with a longer-term finance package now that the property has been refurbished and is ready to be rented out. This also released equity to enable our client to look for their next property project.

If you feel the ‘need for speed’ or even if you want to take things a bit more slowly with your property purchase the don’t hesitate to contact us