Quick bridging loan with online valuation – successfully challenged when refused

Area
Co Durham
Capital Raised
£80K

The Scenario

Our client was selling his home in Hartlepool and moving inland to the pretty village of Chilton – buying a similar 3-bed detached house priced at £170K. He needed to buy before selling, and had a substantial deposit to put down, so this was a straightforward regulated bridging loan to be secured against both properties to achieve the lowest rate.

His borrowing requirement was just 33% of the combined property value, and the projected valuations were well below the lender’s ceiling, so the properties qualified for a fast-and-low-cost online valuation (AVM or Automated Valuation Model).

Except that… one of the properties failed to meet the value we needed on the AVM.

The Solution

Failing the online valuation meant our client would have had to pay £300 for an on-site valuation - and they were cancelled due to Covid 19. He stood to lose the house he'd settled on. 

We know from experience that valuations based on online algorithms vary from week to week – depending on (amongst other factors) most recent sales in the area.

We pressed the lender to re-run the valuation: they did and the property passed. A week later his finance was available, with the exit to be the sale of his original home within 12 months.

Read our blog on AVMs and LTV thresholds during coronavirus special business measures

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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