Auction finance bridging loan to purchase an old police station at auction to convert it from commercial property to residential flats.
Founded in 2004, the client was a house builder with a local focus. Wanting to give something back, they didn’t simply focus on providing comfortable, spacious and customisable new build homes for first-time buyers, they supported the employment of local tradesmen in and around Birmingham.
Whilst at an auction, the two savvy property developers spotted an opportunity to turn an old police station into cheerful and welcoming homes. With a wealth of experience in exciting renovations on obscure and outdated buildings, such as museums and historic buildings, our clients acquired the site at a great price on the condition that they could complete the transaction before the end of the following month. With time-restrictions on the purchase, the pair needed a reliable funder who could provide an auction finance bridging loan to complete the purchase.
Mainstream funders were discouraged by the fact they would need to obtain planning permission post-purchase to convert the old police station into residential apartments. With the risk of a failed planning application, many lenders were hesitant to supply the property auction finance our client needed.
To complete the purchase and secure this great opportunity, the developers needed a short-term funder with a track record of delivering the right property auction finance within tight time frames.
After being introduced through a mutual contact, we met with the owners to talk through their plan and we were impressed by their in-depth knowledge of the local property market. Without hesitation, we happily offered to provide them with a property auction funding facility of £812k for a term of 9 months to purchase the rundown police station and see them through the initial planning period.
Following the purchase, the developers went to the planning authorities and within less than 3 months were successful with their application to convert the police station into apartments.
Following the grant of planning permissions, a new funding offer from a development funder looking to help the clients complete the project was agreed, allowing the client to repay our funding and finally give the police station the new lease of life it deserved. All done in less than 5 months.