Below Market Value Bridging Loan

There are a number of scenarios where you may be able to use a below market value bridging loan, to secure a higher level of funding against the open market value.

Main features of a below market value bridging loan:

  • Up to 75% of the Open Market Value
  • Up to 100% of the Purchase Price
  • Lend against the valuation
  • More than 75% of Purchase Price
  • Quickly purchase a discounted property

Get in touch to discuss and arrange a quote or find our more below.

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Reasons for Below Market Value Bridging Finance

Here are some of the most common reasons that may require a bridging loan on a below market purchase.

Discount vs Aggregate Value

If you are buying more than one property or a portfolio of properties, then you may be able to secure a discount off the open market value. In this scenario, you may be able to use a bridging loan to cover 75% of the value, which could be higher than the agreed purchase price.

Title Creation

If titles are being split creating a higher aggregate value than the purchase price, you could lend against new total value after the split.

Distressed & Motivated Sellers

If a significant discount has been agreed for a fast completion with a distressed seller, then a below market value Bridging Loan can be done quickly and up to 75% of the value.

Planning Gain

If planning has been gained prior to completion, then you may be able to lend against the new market value with planning. For example you exchange contracts on a purchase, gain planning and then complete the purchase at a later date.

Value Uplift From Works

Lend against the full new market value after works have been completed, with no restrictions on purchase price or cost of works. This can also be done where a option agreement is in place and works have been carried out prior to completion.

Apply For a Below Market Value Bridging Loan

Fill in the form below and one of our expert bridging finance brokers will be in touch to arrange a initial quotation.