Case study

Property developers unlock additional profits with Below Market Value Bridging Loans


At Ultimate Finance we provide a range of Residential Bridging Finance solutions, including Below Market Value (BMV) loans, through which property developers can take advantage of a discounted price on a purchase and maximise their profits based on its actual valuation. Reasons for the discounted price vary and include the need for a quick sale, multiple properties being bought on separate titles, value uplift from refurbishment works and the creation of new titles out of a multi-unit freehold block of flats. The Bridging Finance team at Ultimate Finance have been using their expertise and partnering with industry Introducers to help developers meet their ambitions. Regional Director Kay Williams has recently delivered funding to two different property developers with distinct requirements for BMV facilities.

Securing a discounted price from a distressed seller

Kay supported broker Marie Woodhead of Synergy with the requirements of a client looking to purchase three properties below value under the condition of a speedy sale. The team at Ultimate Finance has plenty of experience with BMV requirements and quickly tailored a £248,000 Purchase Bridging Loan to allow for the sale to proceed.

Kay explains, “The vendor needed a quick sale on a three-bed terrace house and two three-bed semi-detached properties, and Marie’s client is an existing landlord and developer with five years’ experience and an impressive portfolio of existing properties looking for new opportunities. We were delighted to be able to use our expertise in helping the developer maximise the returns on the purchase of the homes with our BMV product”.

With the properties now added to the developer’s portfolio, they will be proceeding with  light refurbishment works and putting them back on the market at a profit.

Multiplying profits through title creation

Kay also recently worked with Grant Poole-Adams of Harvey Bowes Financial Services whose client, a developer with extensive experience in the industry, was looking to purchase 22 flats under one title which they would then split up to create leaseholds for individual flats.

By securing all 22 properties at once, the developer could benefit from a discounted price so the team at Ultimate Finance created a bespoke £2.36m Purchase Bridging Loan which allowed for the flats to be purchased below their market value.

Kay explains, “As our first deal with Grant, it was important that I demonstrate how easy Ultimate Finance are to work with, and help Grant secure the largest funding line for a client he’s ever had. We got to work straight away to understand what the purchase terms of the property were so we could get working on the Bridging Loan and help the client benefit from the discounted price without any unnecessary delays. Together, Grant and I ensured we helped this developer achieve their ambition and secure the opportunity with the right funding solution”.

Kay concludes, “Although the property sector has faced many challenges in the past few years – and there could be more to contend with this year – it is still possible that developers may find themselves faced with a rare opportunity too good to be turned down, and something they don’t want to miss due to a lack of funds. Our Bridging Finance solutions have been designed to be put in place as quickly as possible by eliminating unnecessary process and procedures: we are able to provide an offer in principle within just 24 hours, and a fully credit backed-offer in 72 hours”.

Discover our range of Residential Bridging Loans.

Solutions that work for businesses and introducers

It’s why more and more businesses are choosing us as their funding partner of choice

You may also like

Let’s get things moving

If you would like to talk to us about any funding needs, call us on 0800 121 7757, register as an Introducer or request a quote for your business today