MUFB Auction Purchase and Bridge Exit
The borrower
Daniel purchased a property at auction using bridging finance. He spent a couple of months refurbing the property, splitting the property into 2 self-contained flats. He decided to keep the individual flats on the same title rather than creating separate leases.
In order to be able to repay the expensive bridging finance straight away Daniel needed a lender that would use the Market Value of the property rather than the Purchase Price but this was proving difficult as he had only owned the property for 3 months. In addition, the property was now classed as a MUFB rather than raising the funds on 2 individual flats.
- Purchase Price £220k
- Loan Required £189k
- Refurb Cost £25k
- Market Value £270k
How we can help
Foundation are able to help customers exit a bridge that is secured against a MUB after only 3 months and where work has been carried out to improve the property we can take the Market Value rather than the Purchase Price.
We love to talk a case through, why not call your Foundation Regional Area Manager today?