Quick desktop property valuation on 2nd charge mortgage secures dream home for a relocation to France

Area
Northampton
Capital Raised
£35K

You know how it is: you’re having a great time on holiday in France, you see a house that you could build a new life around, and you think “Let’s buy it”…

The key to turning this deal around quickly was approaching a lender who would use a "desktop valuation" on the property a second-charge loan would be secured against.

The Scenario

We got the phone call from Normandy: a client had found us from a Google search for "bridging finance" and "property in France". They had found a house close to the edge of the Andaines national forest, 45 minutes inland from Mont St Michel.

The couple wanted to sign the offre d'achat on their dream home before they returned to the UK.

This wasn’t completely a spur-of-the-moment decision: the husband was a self-employed designer who was confident he could continue to work from France, and they’d contemplated a relocation in a few years’ time.

They’d built up a good nest-egg of savings and substantial equity in their home in Northampton. They needed just £35K of additional funding to buy the house they wanted. But they needed it fast.

The Solution

A second-charge bridging loan secured against their UK home would give them the cash they needed – it would be repaid when they sell it and complete the move.

The low capital sum they required (they had a mortgage of just £70,000 outstanding on their Northamptonshire home) gave us more options for sources of finance, and also meant that we wanted to keep the set-up costs as low as possible.

We immediately approached a lender we have a good relationship with, who offers joint solicitor services to minimise legal costs and would use a £99 AVM (Automated Valuation Model) or “desktop valuation” for borrowings of less than 50% of a property valuation.

All that was required was a one-page statement of assets and liabilities, and we had a Decision In Principle and the AVM (putting a valuation on the Northampton house of £365,000) confirmed that same day.  That was sufficient to secure the purchase.

The only hold-up in completing the deal was getting their current first-charge mortgage lender to approve the second-charge against the house. The high-street bank moved at what seemed to be a glacial pace in the run-up to Christmas, but with a lot of pushing the funds were released and the sale could be completed before the holiday break. Happy Christmas all round.

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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