Below Market Value Bridging Loan completes in four hours to maximise profits

A team of savvy property investors who regularly source Below Market Value (BMV) acquisitions through local networks to improve and sell on for profit recently added another gem to their portfolio and maximised profits with financial support from Ultimate Finance.

A timely introduction

Through direct negotiation with the vendor the investors capitalised on their expertise to acquire the property below market value and reached out to broker Anil Sehmi of C2G Consultancy to explore available funding options. Anil says, “It was my first time partnering with Ultimate Finance’s Regional Director Alice Williams and I have been blown away by the dedication she and the team showed to getting the funding in place, so much so that shortly after completion I was more than happy to put forward another funding requirement for the same client which has already completed for another BMV purchase”.

Ultimate Finance tailored a £346k BMV Purchase Bridging Loan to provide the necessary funding and allow the investors to acquire the property, with the funds due to be released on 31^st October 2024. However, just 24 hours prior, the new Labour Government announced as part of its budget an increase to Stamp Duty due to kick in at midnight that day. This sudden change necessitated swift action from all parties involved to retain planned profit, and so Alice and Anil worked with the Ultimate Finance team and the solicitors to ensure the funding was completed within a narrow four-hour window.

Tailored funding to support ambitions

Ultimate Finance’s ability to act quickly was pivotal to delivering the investors’ ambitions. Alice comments, “This deal exemplifies our commitment to providing bespoke financial solutions that meet unique needs, and especially why we like to say that ‘when it comes to property, time is of the essence’. By working closely with Anul and leveraging our expertise, we enabled the borrower to complete the purchase before the Stamp Duty increase kicked in and allowed them to meet the profit margins they had with the project”.

Because of the ability to lend against the open market value of the property, the Bridging Loan not only facilitated the purchase but also afforded the borrower the opportunity to redistribute their available funds across multiple transactions at the same time so they can complete on works and title split to further uplift the value of the purchase when it is sold.