When a property investor won a three-bedroom terraced house at auction for £185,000, they had just 28 days to complete. With no mortgage offer in place, they needed fast, reliable finance. Here is how StatusKWO delivered.
The Property
A three-bedroom terraced house in Manchester, purchased at auction for £185,000. The property needed cosmetic refurbishment but was structurally sound, with an estimated post-works value of £250,000.
The Timeline
- Day 1: Auction won, investor contacts StatusKWO
- Day 2: Terms issued and accepted, valuation instructed
- Day 5: Valuation received confirming £190,000 current value
- Day 7: Credit approval obtained
- Day 14: Legal due diligence completed
- Day 21: Funds transferred, purchase completed
Seven days ahead of the 28-day deadline.
The Facility
- Loan amount: £135,000
- LTV: 71% of current value
- Term: 9 months
- Monthly rate: 0.75%
- Exit strategy: Refinance onto buy-to-let mortgage post-refurbishment
The Outcome
The investor completed the refurbishment within three months at a cost of £25,000, bringing the total investment to £210,000. The property was then valued at £255,000 and refinanced onto a buy-to-let mortgage, repaying the bridging loan in full.
Net equity created: £45,000
The Lesson
Preparation is key. This investor had their solicitor ready, their documents prepared, and a clear plan before auction day. Combined with a responsive lender, this made the difference between success and a lost deposit.
Contact StatusKWO to prepare for your next auction purchase.