District & County Investments (DCI) has provided £370,000 in bridging finance to fund the full purchase price of a four-bedroom detached property in Luton acquired below market value.
The transaction, arranged through broker Tushar Gadikar, involved a repeat client who secured the property ahead of auction. DCI’s facility covered 100% of the purchase cost, assessed against the property’s market value rather than the discounted purchase price.
Below market value lending approach
Under DCI’s BMV product structure, bridging finance for qualifying acquisitions is evaluated based on the property’s market value rather than the actual purchase price. This methodology allows lenders to consider funding up to 100% of the purchase price when buyers secure sufficient discounts.
Michael Clifford, commercial director at DCI, said: “BMV transactions require us to understand how the purchase price has been arrived at and satisfy ourselves that the underlying value supports the facility. That means looking at the individual transaction rather than applying a standard approach based solely on the price being paid.”
The deal marks another transaction between DCI and both the borrower and broker, who have previously completed property acquisitions with the lender. Clifford noted that repeat business allows for a more streamlined process as parties understand each other’s requirements and assessment methods.
Broker perspective
Gadikar commented on the importance of working with lenders who distinguish between purchase price and underlying market value in BMV cases. He stated that previous experience with DCI’s assessment process provided confidence in bringing repeat transactions to the lender.
The bridging finance sector has seen increased activity as buyers seek alternative funding structures, particularly as mortgage product availability fluctuates following recent policy announcements. BMV acquisitions typically involve properties purchased through auction, distressed sales, or pre-auction negotiations.
While property prices in some regions face downward pressure, below market value purchases continue to attract investor interest as a strategy for building immediate equity positions.
The transaction represents a segment of the bridging market focused on property investors acquiring assets at discounted rates, with short-term financing structures designed to facilitate rapid completions ahead of refinancing or sale.
