Our client, an experienced property investor and repeat Merryoaks client, purchased a residential property in Banbury for £250,000. A RICS valuation that followed assessed the property at a £263,000 market calue, which was £13,000 above the purchase price. The next step was to find a lender willing to recognise that higher value and structure the funding around it.
The Problem
The client needed a bridging facility that reflected the property's market value and provided enough time to carry out the planned refurbishment before refinancing.
The purchase price was £250,000, while the valuation came in at £263,000. Getting a lender to recognise the open market value was important as it would allow the client to access a higher leverage.
The Solution
We worked with the lender to agree that the property could be assessed on its open market value merits. This resulted in a £263,000 valuation being used for the lending calculation.
We then structured a 24 month fully serviced bridging facility to allow time for client to complete the refurbishment.
The client's existing relationship with Merryoaks also helped. They are an experienced investor and repeat client who has used us across different types of property finance, including bridging and buy to let.
The Outcome
The client was able to complete the purchase with a bridging facility at 75% LTV based on the property's higher assessed value of £263,000. With the funding in place, they could proceed with the refurbishment and position the property for the next stage of their investment strategy.
The Results
- Purchase price: £250,000
- Market Value: £263,000
- Loan amount: £197,250
- LTV: 75%
- Rate: 0.82% per month
- Term: 24 months
For experienced investors, the valuation can make a meaningful difference to how a deal is structured. Here, a £13,000 difference between the purchase price and market value helped support a 75% LTV facility based on the higher figure.
If you’re looking to maximise the funding available against a property’s market value, speak to us.
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