UNDER MARKET VALUE PROPERTY PURCHASE FUNDING
We funded the following transaction in July 2025
1 – Client who works in the building industry located 2 part finished detached houses that, the current owner could not complete due to ill health.
2 – The open market value for each house was 400.000.00 pounds
3 – The current owner was happy to receive 190.000.00 pounds per house
4 – Our client had 62,000.00 pounds for each house to finish off the builds
5 – Our funder offered a net loan of 201,000.00 pounds even though the contract price was 190,000.00 for each property leaving the client with 11,000.00 cash in hand towards the works.
6 – Our client took over the limited company as well that the current owner had used as the SPV special purpose vehicle to purchase the land a year earlier. The company was clean of any liens and a lower duty was paid for change of directorship and shareholder.
7 – The rate of interest charged was 0.99% per month rolled into the funding.
8 – Once completed, the new owner will refinance on a BTL Buy to Let basis redeeming the bridge funding with a healthy equity as well