Bridge Fusion Support for a Mixed-Use Property Bought at Auction

Loan Amount:
£134,000

Property Value:
£180,000

LTV:
70%

A property investor required funding for a property being bought at auction. The property itself featured both commercial and residential units, and as we progressed it became apparent that a Bridge Fusion loan would be the most appropriate option for the borrower.

The units themselves each presented unique, individual challenges for our underwriter. The kind that can put the long-term potential of an investment in doubt.

To ensure this deal’s overall potential held firm, we had to review each individual unit on its merit. This included analysing the case from both a residential and commercial perspective.

Checking the Details

One of the main concerns for a number of the units was that they required a bit of work to be desirable. Fortunately, our underwriter was able to confirm that refurbishment works were planned, and wouldn’t interfere with our deal.

There were also a few issues in the ownership structure of some of the units. To mitigate this, we put plans in place to minimise the risks involved.

The borrower also had plenty going for them beyond these issues. They had evidenced refinancing exit strategies at the ready, alongside a long history of operating in the property market. As such, we were able to deliver funding in time for their auction-related time frame.

The Need for Bespoke Finance

Mixed-use investments can allow property investors to benefit from the best of both residential, and commercial opportunities. But, they can also lead to them struggling against their respective pitfalls.

This is why we launch new products such as our Bridge Fusion loans – to keep up with, and match the complexity of the property market. As borrowers asses their options post-budget, the need for bespoke financial solutions may become even more apparent.

No matter what challenges present themselves though, we will be there with a range of products suited for residential homes, commercial spaces, mixed-use properties, and everything in between.