What Does BMV Mean In Property Investment?

The acronym ‘BMV’ is commonly used in property investment forums and the like. Its an abbreviation that stands for ‘Below Market Value‘. It usually refers to when a property investment is purchased at what is considered to be less than the current market value (CMV).

What Is Considered a BMV purchase?

Simply securing a small discount on a property investment purchase does not necessarily mean you have secured a property BMV. Getting a purchase at 5-10% less than the asking prices may be a good deal but a RICS surveyor may still consider the purchase price to be the open market value (OMV).

Genuine BMV purchases may be in due to:

  • Auction Purchase
  • Repossession
  • Distressed Sale
  • Cash Sale/Quick Completion Required
  • Probate
  • Large Portfolio Sale
  • Off Market Sale

Buy To Let Mortgages On A BMV Property

With the majority of Buy To Let lenders, they will only lend against the purchase price within the first 6 months of purchase.

If you have genuinely secured a property at a significant discount on the open market price. Then there are a small number of lenders that will take this into account. Also if you are carrying out renovations, then a Bridging Loan may be required.

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