Quick bridging loan with online valuation – successfully challenged when refused

Quick bridging loan with online valuation – successfully challenged when refused

Area
Co Durham
Capital Raised
£80K

The Scenario

Our client was selling his home in Hartlepool and moving inland to the pretty village of Chilton – buying a similar 3-bed detached house priced at £170K. He needed to buy before selling, and had a substantial deposit to put down, so this was a straightforward regulated bridging loan to be secured against both properties to achieve the lowest rate.

His borrowing requirement was just 33% of the combined property value, and the projected valuations were well below the lender’s ceiling, so the properties qualified for a fast-and-low-cost online valuation (AVM or Automated Valuation Model).

Except that… one of the properties failed to meet the value we needed on the AVM.

The Solution

Failing the online valuation meant our client would have had to pay £300 for an on-site valuation - and they were cancelled due to Covid 19. He stood to lose the house he'd settled on. 

We know from experience that valuations based on online algorithms vary from week to week – depending on (amongst other factors) most recent sales in the area.

We pressed the lender to re-run the valuation: they did and the property passed. A week later his finance was available, with the exit to be the sale of his original home within 12 months.

Read our blog on AVMs and LTV thresholds during coronavirus special business measures

Max Mallinson

Finance Broker CeMAP

Cardiff

0117 332 5977

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Book a free telephone consultation with me at a time to suit you.

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Alex Morris

Private Client Adviser

Bristol

0117 332 5061

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Scott Dutfield

Finance Broker

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you

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Carly Cheeseman

Head of International

Bristol

0117 457 9922

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Nick Kerley

Finance Broker

Cardiff

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Sam Baker

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Cardiff

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Fergus Allen

Senior Finance Broker

Cardiff

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Jacob Phipps

Finance Broker

Bristol

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I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you.

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Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need. customDatabaseField-8455

Mathew Phillips

Senior Finance Broker

Bristol

0117 959 5094

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Alex Chambers

Senior Private Client Adviser

Bristol

0117 403 4324

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Luther Yeates

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Bristol

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Sam ONeill

Senior Finance Broker

Bristol

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I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you.

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