£1.05 Million Auction Bridging Loan to Secure Prime Residential Property

A £1.05 million auction bridging loan enabled a private client to successfully acquire a prime residential property at auction, completing within the tight 28-day deadline.

The client identified a high-value property in a sought-after area listed for auction. Given the competitive bidding and strict completion timescale, traditional mortgage finance was not a viable option. Immediate access to funds was essential to secure the purchase and avoid losing the opportunity.

The Challenge

The property was sold at auction with a legal completion period of just 28 days. Traditional lenders could not provide funding within this timeframe, and the client needed certainty that completion could proceed without delay.

Key challenges included:

• Fast turnaround required for auction completion
• The property needed refurbishment before mortgage lenders would advance funds
• Ensuring a secure exit strategy post-purchase

The Solution

Global Bridging Finance arranged a £1.05 million short-term bridging loan secured against the purchased property.

The facility was structured over a 12-month term with interest retained to support cash flow. This approach enabled the client to:

• Meet the auction completion deadline
• Fund initial refurbishment works
• Preserve existing liquidity for other investments

The loan was secured via a first-charge over the acquired property, providing the lender with confidence while allowing the client rapid access to funds.

The Exit Strategy

The client’s exit strategy involved:

• Completing light refurbishment to enhance the property’s marketability
• Refinancing onto a standard residential mortgage once the property was in mortgageable condition

The plan was clearly documented, providing both the client and the lender with reassurance about repayment timelines.

The Outcome

The auction bridging loan enabled the client to:

• Secure a prime residential property at auction without delay
• Avoid losing the deposit or the property due to traditional mortgage delays
• Refinance onto a conventional mortgage after refurbishment, preserving long-term liquidity

This case demonstrates how auction bridging finance provides speed, certainty and flexibility for time-sensitive property transactions.