Auction Bridging Finance

Auction Bridging Finance

Auction Bridging Finance

Auction Bridging Finance

Bridging Loan Auction

Madison Carter Finance Auction Bridging Finance is a high-quality bridging loan product. We strategically advise property investors, property developers or would be property auction purchasers who require finance to complete a transaction within 4 weeks.

Our fastest deal from submission to a lender to cleared funds – is 3 working days.

My experience of most mortgage brokers are that they will search and offer you a product with the best rate that you can afford. However, Steve has gone the extra mile and provided a service that exceeded my expectations. As other reviews have testified he has provided sound financial advise based on my circumstances and future plans and explained succintly how I will be implicated by the latest taxation rules. He has been responsive to my needs throughout the process. I would highly recommend Madison Carter to anyone!

Andreas Antoniou

UPDATE: Rates starting from 0.55% and a maximum loan to value (LTV) up to 85%. Cash back available 📞 to find out more 0207 431 7606

Auction Bridging Finance

Auction bridging finance is often the ideal solution for property developers, property investors seeking a speedy loan at auction. Convenient and quick, an auction bridging loan allows developers & investors to make rapid decisions and take action immediately. As a result, developers & investors can pursue lucrative opportunities that may otherwise be out of reach. 

Once you’ve won the bid in auction you are typically required to complete within 4 weeks from exchange of contracts. Winning the auction is an exchange of contracts making you legally bound to complete the transaction. The 4 weeks completion period can differ but you must read the sales pack before you start bidding.  We have the capabilities to facilitate quick completions with our ‘Auction Bridging Finance’ bridging loan product.

Auction Finance Product Features

 

Max Loan To ValueUp to 85%
Interest0.55% per month
Term1-36 months for auction bridging finance
TimescaleOur fastest deal from submission to a lender to cleared funds – is 3 working days. Typically, we say up to 4 weeks.

Property Auction Type & Client Criteria

Residential, commercial property or land

  • Available to individuals or SPV’s
  • No maximum age to borrow
  • No income required
Auction Bridging Finance

What To Keep In Mind When Buy A Property At Auction

If you’re considering purchasing property at an auction, there are many factors to keep in mind:

Property Type

You need to know in advance what type of properties you want to invest in and that will make identifying suitable bidding opportunities easier.

Financial Situation

It’s important to know how much money you can afford to spend. Having finances in place beforehand decreases the chance of your purchase falling through. Therefore, obtaining a quote from a reliable auction bridging loan provider like Madison Carter Finance is a wise idea.

Property Issues

You must realise that there’s always a reason for selling a property at auction. Therefore, you need to have a clear understanding of the property’s issues before bidding. That will ensure you are properly prepared and can take potential costs into account before buying.

How To Buy A Property At Auction

If you have never purchased a property at auction before, it’s important to know how the process works. For brand-new property developers or investors, the idea of purchasing at auction can cause concern or even feel overwhelming.

Making Speedy Decisions

At a property auction, everything moves at speed. Therefore, you must make speedy decisions and be prepared to commit to them. Since purchasing a property involves large sums of money, it isn’t surprising prospective developers may pause before taking the plunge.

The Process Of Purchasing At Auction

Here, we look at the process of purchasing a property at auction so you can be well-informed. It works like this:

First

Firstly, you must look at the auctioneers’ physical or online brochure. Once you find a property you like, then you should inspect it. Possibly, you will want to consider getting a survey before the auction. If you plan to use contractors to carry out refurbishment works, take them with you to inspect the property.

Second

Next, if you’re happy with the property, its value, and costs, then get a quote for an auction bridging loan from us. You will then know the costs to factor into your budget.

Third

Thirdly you must attend the auction. By this time, you should have a clear idea of the maximum amount you’re willing to pay. If you win your bid, you exchange contracts and pay your 10% deposit. Then you have four weeks within which to complete your transaction. You have a legal obligation to buy the property or you risk losing your 10% deposit. You may also face court action for failing to complete the contract.

Fourth

It’s time to obtain your auction bridging loan from us. You will receive the money rapidly so that you can complete your transaction within the 28-day period. Once you pay the remainder of the property price, you become its owner. You can then start work on any refurbishment project. Once you win the auction, typically, you need to complete in 4 weeks.

Which Questions Should I Ask When Buying A Property At Auction?

There are a few key questions to ask when considering buying a property at auction. Some of the primary questions to address include:

  • Has the property been on the market before? If so, how long was it up for sale?
  • Has the sale of this property fallen through before? If so, what was the reason for this?
  • How long did the former owners have the property for?
  • What is the history of the property?

Tips When Buying at Property Auction

Research Thoroughly

Research Thoroughly

Before thinking about an auction, it’s important to conduct research on the properties you are interested in. Check out the auction catalog or check online listings to gather information about the properties, their condition, title status, and any potential issues that may affect your choice to buy.

Set a Budget

Set a Budget

Determine your budget beforehand and make sure to stick to it during the auction. Account for additional costs such as auction fees, legal fees, and potential renovation expenses. Don’t overthink the bidding process, as it can lead to financial overextension.

Psychology

Psychology

If you are new to property auctions, attending a few as an observer can provide valuable insights into the process. This experience will help you become more confident when you decide to bid on a property. It is crucial to remain disciplined during the auction, setting a maximum bid for each property and avoiding emotional decision-making. Confidence is key in competitive auctions, so stay composed throughout the bidding process.

Pre-Approve Your Bridging Finance

Pre-Approve Your Bridging Finance

If you require financing for your purchase, we recommend obtaining a pre-approval for a loan from a bank or a specialist mortgage broker. Having pre-approval signals to the auctioneer and other bidders that you are a serious buyer, increasing your credibility.

Use A Bridging Loan Broker

Taking Professional Advice

Brokers are transacting 100’s of deals per annum and have industry insights. Remember, a Bridging Loan is a non regulated loan. So, there is zero consumer protection. Madison Carter Finance Bridging Loan Brokers have tacit knowledge, beyond finance in real estate, and pass that value onto you, the borrower.

Inspect the Property

Inspect the Property

Most auction properties are sold as-is, so conducting a thorough inspection before the auction is vital. If you lack experience in property evaluation, consider bringing along a trusted contractor or surveyor to assess the property’s condition. You may even attend the open day with a surveyor to get a professional evaluation.

Terms and Conditions

Terms and Conditions

Familiarize yourself with the specific terms and conditions of the auction. Read them carefully, and then seek legal advice if necessary. That will ensure that you fully understand your obligations and the implications of purchasing a property at auction.

Proxy Bidding

Proxy Bidding

If you are unable to attend the auction in person, some auctions offer proxy bidding. This means you can submit your maximum bid before, and the auctioneer will bid on your behalf up to that amount.

Reserve Price

Reserve Price

It’s important to be aware of the reserve price, which is the minimum price the seller is willing to accept. If bidding does not reach this amount, the property will not sell. Therefore, make sure to find out the reserve price before the auction begins.

Deposit

Deposit

It’s important to realise that f you win the auction, a 10% deposit should be payable immediately. Therefore, you must ensure you have the necessary funds available to complete the transaction. Winning the bid legally binds you to complete the sale.

Cost Of Bridging Loan

Bridging Loan Calculator

Frequently Asked Questions

Remember, success requires careful preparation, a clear budget, and the ability to stay calm amid the excitement and competition. Use these tips from Madison Carter Finance to enhance your chances of making a successful property purchase at an auction.

Auction Finance Calculator

Try our Auction Finance Calculator

Auction Finance Calculator

Future Property Auctions

Why Do Property Developers Purchase Properties At Auction?

Purchasing properties at auction is commonplace amongst property developers. Frequently, auctioned properties are more affordable, making them an attractive option. Many developers flip properties to turn a profit and they have the best chance of maximising this opportunity if they can get a great deal at a property auction.

Rapid Resale Potential

Often, properties in poor condition but in desirable areas are sold at auction at a lower than market price. This allows developers to make substantial profits from investing in these properties, refurbishing them, and then reselling them rapidly.

Adding To A Rental Portfolio

Alternatively, they may choose to invest, refurbish, and then add the property to their rental portfolio. Then can rent out the property as a holiday let or private dwelling to attract an ongoing income.

Speeding Up The Process

Furthermore, purchasing at auction speeds up the property buying process. There is no need to negotiate or wait as is necessary when dealing with traditional property chains.

Instead, the property is immediately available without delays, setbacks, or obstacles. Auctions allow developers to complete a deal on the spot without the risk of gazumping.

What Is Auction Bridging Finance?

Auction bridging finance is a type of bridging loan product. Its purpose is to allow property developers or property investors to complete purchasing transactions rapidly and conveniently. When developers place their winning bid, they have just a few weeks within which to complete their purchase.

Loans Up To 85%

Auction bridging loans give buyers cleared funds in record time compared to high street lenders. They can help with a loan to the value of up to 85%, making it easier to create long-term plans and arrangements, and start renovations to sell property on. Furthermore, they can even help with the cost of works.

Why Do Property Developers Use Auction Bridging Finance?

Buying properties at auction represents one of the most efficient ways of acquiring properties. There is no need to spend a long time searching property portals, dealing with sellers, and speaking to Estate Agents. Auction bridging finance opens up the possibility of buying properties at auction to developers who lack immediate access to cash.

Auction bridging loans are a versatile solution for all kinds of property purchases. Purchasers can use them to buy residential properties including both houses and flats. They can also use the funding to purchase semi-commercial or commercial properties.

As a result, auction bridging loans are a convenient and flexible choice for investment property purchases.

Speedier Than Standard Selling

Property sales at auction are fast. Certainly, they are far more speedy than property sales through the standard selling process. When a property developer wins a bid for a property, they immediately exchange contracts.

Rapid Access To Funds

Therefore, they must complete their transaction within just four weeks. In many cases, property developers simply don’t have sufficient cash on hand to cover their transactions. In these situations, an auction bridging loan can prove to be indispensable. Since auction bridging loans go through quickly, they allow property developers to complete their chosen purchase within the necessary timescale.

Ahead Of The Competition

With an auction property bridging loan, developers gain the competitive edge during bidding. They need not delay worrying about whether they can secure funding quickly enough or whether they can obtain sufficient funds.

An auction bridging loan is right there, ready to go. Developers will know precisely how high they can go. They will also know whether they have sufficient left over to cover their refurbishment plans.

Buying properties at auction represents one of the most efficient ways of acquiring properties. There is no need to spend a long time searching property portals, dealing with sellers, and speaking to Estate Agents. Auction bridging finance opens up the possibility of buying properties at auction to developers who lack immediate access to cash.

Versatility

Auction bridging loans are a versatile solution for all kinds of property purchases. Purchasers can use them to buy residential properties including both houses and flats. They can also use the funding to purchase semi-commercial or commercial properties.

Flexible And Convenient

As a result, auction bridging loans are a convenient and flexible choice for investment property purchases.

auction bridging loan

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How Can Madison Carter Finance Help?

Here at Madison Carter Finance, we offer our own high-quality auction bridging loan that meets the needs of property developers or and investors. Our product allows prospective purchasers to confidently bid at property auctions. They can rest assured that they will have sufficient funds to complete their transaction within the four-week time period.

We can offer incredibly fast financing. In fact, our fastest deal takes just three working days before receiving cleared funds.

To find out more about our auction bridging finance products, contact our team today. We’re looking forward to working with you and helping you purchase your investment property.

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The Financial Conduct Authority (FCA) may regulate your loan. If your loan is regulated we can deal with your application. It must be submitted through an FCA regulated intermediary.