Have you bought at auction before?
Do you have any experience in 'buy to let'?
Some bidders at auction may already have funds available. Others will need to borrow and it is prudent
to have a committed offer of finance from a lender before you bid. Legal completion of a property
purchase is usually within 28 days of the day of the auction (sometimes much less!) but the practical
time frame for pre-arranging finance can be much shorter i.e. the time between receiving the catalogue
and the day of auction.
Finance offers by lenders will be a percentage of an independent valuation of a property and
not a percentage of the price paid nor of any catalogue guide price. This means that the
valuation needs to take place as soon as possible before the auction so that you have a clear
idea of how much finance you may need to raise and thus how far you can bid. Whilst sources of
finance are many, we find that many High Street lenders are often unable to arrange an almost
immediate valuation and formal offer. In these cases a specialist lender, such as
essex property finance limited, comes into its own.
Our clients tend to be developers seeking to buy, refurbish or convert and then sell on or those
interested in investment i.e. 'buy to let'. Whilst our developer clients often fund the building
costs themselves we are always ready to consider a tailored project finance package to include
building costs based on an 'end valuation', that is what the property will be worth after the
proposed works are finished.
Our "buy to let" clients use us for bridging finance for up to 6 months pending long term finance
from another source. Some of our regular 'buy to let' clients keep an unencumbered and let property
under mortgage to us which provides security for future property purchases - they know what we will
advance so they can make a spontaneous decision at auction.
For new "buy to let" clients we like to see an outline offer of long-term finance. If you have problems we
do have contacts with mortgage lenders and we can often find long-term finance. Remember, High
Street lenders may insist that rents should exceed mortgage repayments by a 25% to 30% margin.
In all cases you should act as soon as you receive your auction catalogue. Once you have seen
a property - and have taken account of refurbishment costs and fees - you should contact your
lender immediately to arrange for a valuation and formal offer of finance. essex
property finance limited will usually provide a valuation within 48 hours, often inside 24 hours! All being
well we can then make an immediate offer of finance. Our solicitors are totally committed to an inside
28 day completion - ensure your solicitor is able to work as quickly as well!
essex property finance limited is well established and renowned and we have many satisfied,
repeat clients. We are happy to discuss any proposition with you or even just give advice,
without any cost. Feel free to contact us at any time.