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Auction Purchase Case Study

Auction Purchase in London

How Sarah secured a 3-bed Victorian terrace in 21 days

Hackney, London
Victorian Terrace
£363,750
Loan Amount
75%
LTV
0.49%
Monthly Rate
6 mo
Term

The Challenge

Sarah spotted a 3-bedroom Victorian terrace at a London auction that needed cosmetic work but was priced well below market value. She needed to complete within the standard 28-day deadline but her mortgage wouldn't be approved in time.

The Solution

A bridging loan allowed Sarah to complete the purchase in just 21 days, beating the auction deadline. She then had 6 months to arrange a remortgage while doing light refurbishment.

Timeline

Day 1
Won at auction with a winning bid of £485,000
Day 2
Applied for bridging finance with supporting documents
Day 5
Valuation completed and offer issued
Day 12
Legal work completed
Day 21
Completion - keys received
Day 90
Light refurbishment completed
Day 150
Remortgaged to standard BTL product

Cost Breakdown

Interest (0.49% x 6 months) £10,694
Arrangement Fee (2%) £7,275
Valuation Fee £750
Legal Fees £2,800
Total Finance Costs £21,519

The Outcome

Sarah completed the refurbishment and remortgaged to a BTL product at 65% LTV. The property is now valued at £595,000 - a £110,000 gain on her purchase price, minus costs.

"Without bridging finance, I would have lost my 10% deposit. The speed was incredible - from application to keys in three weeks."
— Sarah, Property Investor
Important: This is an illustrative case study based on typical scenarios. Names, locations and some details have been changed. Actual rates, fees and outcomes depend on individual circumstances and lender criteria. This is not a guarantee of similar results.

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