Auction Finance can work for you if you are:
- Looking to acquire or purchase a property at Auction
- Looking to make your money go further
- Want the time to increase your returns via new leases, ASTs or a light refurbishment before moving to senior debt or a BTL
- Need the time to achieve Planning Permission or Permitted Development Rights (PDR) to resell the property with an uplift or develop out yourself
Auction Finance could be the right solution for you
Given our experience of auctions and auction finance, we understand the pressures and time constraints involved. Normally you exchange 10% deposit at Auction and then have up to 30 days or less to complete the remaining balance.
In most cases, we are able achieve indicative terms in less than 24 hours. On many occasions, we can achieve this in just a few hours.
On receiving information on your Auction purchase or intended acquisition, we can assess the details of the purchase. With our knowledge of our lenders, we are able to give an almost instant indicative estimate of what terms we could achieve with our lenders. This is before even presenting the transaction to a lender.
Once we confirm with you the estimated leverage you are looking for, going through a fact find and understand your intended exit or plans for the purchase, we can present the transaction to the lenders best suited to your needs based our your required criteria and would look to achieve indicative terms to suit your requirements, fast and efficiently.
Our strong long term relationships with our lenders, experience dealing with auction properties, and our knowledge of the issues that can arise from a property at auction, helps us provide a fast, effective service, enabling us to assist you towards completing your purchase on time.
Our Auction Finance loans start from £1,000,000 upwards, with no cap. In some cases we are willing to look at transactions less than this.
With many of our previous Auction Finance transactions, we have achieved up to 70% LTV (Loan To Value) of the purchase price, sometimes higher depending on the purchase. On valuation, if the value comes in higher than the purchase price, we have had lenders willing to consider up to 85% LTV of the purchase price.
Century 10 Real Estate Finance can provide Auction Finance for both onshore and offshore structures. We can also provide terms for Expats and Foreign Purchasers. Normally they would already own property in the UK but they do not have to reside in the UK. We only effect introductions of customers who are limited companies, limited liability partnerships and other bodies corporate, and other partnerships with 4 or more partners.
Auction Finance tends to be relatively short term finance, usually between 3 to 24 months, but in some circumstances can be longer. Interest can either be serviced monthly or capitalised to the loan/deducted from the gross facility, or a combination of both.
Dependent on the borrowers purchase and circumstances, we have been able to arrange terms with or without PGs (Personal Guarantees) or CGs (Corporate Guarantees), and in most cases the PG or CG is limited.