In the current housing market many properties are not achieving their desired price with the result that a much greater proportion of commercial and residential sales are now going through auction houses.
Auctions are an increasingly popular route for investors to find property bargains for both long term letting investments and small property developments. Very often the auction properties are in need of attention and this gives the hands-on investor an opportunity to buy inexpensively and carry out an immediate refurbishment before renting or selling the property.
However, to successfully buy and renovate auction property the investor will need to either have their own cash funds or a readily available loan facility from their bank. Masthaven is able to provide a bridging loan at very short notice to enable to investor to pay the 10% deposit required to secure the property. Subject to there being adequate security, we can then advance the balance of the purchase price, which is usually required by the auction house within 28 days.
We will also be able to part- or fully fund any refurbishment work and once this work is complete the investor will be able to approach his bank for a long term buy-to-let mortgage, to repay the bridging loan (providing there is secondary security).
If you have no cash to put towards the auction purchase we would require to take a charge over another of your properties. If you have enough equity for part of the auction price then it may not be necessary to take security over another property. In either instance we can provide the required bridging loan quickly and release the funds to enable you to complete the purchase and refurbishment of the property.