Completing on an auction purchase

Bridging loan | First charge | Semi-detached | Smethwick

Client’s circumstances: The borrower, an experienced property developer in Birmingham,  was in need of funds to complete the purchase of a property that they had acquired in an auction.

LandlordInvest’s service: Within a week, LandlordInvest was able to complete on a 12 month facility loan of £93,776, at an LTV of 62.5% against the purchase price or 75.0% LTV of the Open Market Value.

The result: The borrower was able to complete the purchase within the required time frame. Due to COVID19 delays, the borrower was unable to repay the loan within the 12 month period. Consequently, LandlordInvest extended the loan term for another 4 months, which gave the borrower enough time to refinance the loan into a long-term buy-to-let mortgage with another lender.

Investment through LandlordInvest involves lending to individuals and companies, so your investment can go down as well as up. Borrowing through LandlordInvest involves entering into a mortgage contract secured against a property as the borrower. Your property may be repossessed if you do not keep up repayments on your mortgage.

LandlordInvest Limited is authorised and regulated by the Financial Conduct Authority (FCA) (FRN 660926). LandlordInvest Limited is not covered by the Financial Services Compensation Scheme (FSCS).

Loans provided to borrowers through LandlordInvest are provided solely for business purposes. Loans are therefore not regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974. You should seek independent legal advice if you are in any doubt as to the consequences of the loan not being a regulated agreement under those Acts.

LandlordInvest Limited (Company No. 09245725), registered office 5 Chancery Lane, London, WC2A 1LG

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