A landlord has completed the purchase of a three-bedroom terraced property in south-west London for £550,000 using a bridging loan that was processed in three days.
Precise, part of OSB Group, provided a 75% loan-to-value bridging facility on a serviced repayment basis to meet the auction house’s 28-day completion deadline. The property was valued at £640,000 using an automated valuation model.
Fast-track completion process
The accelerated timeline was achieved through the use of an automated valuation model and dual representation legal services. The borrower required quick access to funds to secure the auction property within the standard completion window.
The landlord plans to undertake refurbishment work costing approximately £32,000 before refinancing onto a buy-to-let mortgage. The property will then be added to their existing portfolio, reflecting ongoing demand in the rental market.
Industry response
Alan Kimber, head of bridging at Precise, said: “Auction purchases often come with tight deadlines, so it’s important that brokers and borrowers can access funding quickly when opportunities arise.”
Yehuda Waldman, director at broker MoneyScore, noted that the client needed certainty around the fixed auction deadline. The transaction demonstrates how bridging finance can facilitate property acquisitions when traditional mortgage timelines prove impractical, particularly as conveyancing delays continue to affect property transactions.
The case highlights the role of bridging loans in the buy-to-let sector, where investors increasingly use short-term financing to secure auction properties before transitioning to long-term mortgage arrangements. With rent expectations rising across the UK, landlords continue to expand portfolios through auction purchases.
