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You find property that you can
acquire at a reduced price, usually up to 20% (BMV) Below Market Value. (See
Example Below):
|
Property Value
|
£100,000.00 |
|
Agreed Purchased Price |
£ 80,000.00 |
|
Mortgage @ 85% of Property
Value |
£ 85,000.00 |
The Mortgage company will loan
up to 85% of the valuation of the property, in the above
example this could be up to £85,000.00 giving the buyer a possible £5,000.00 cash back.
However, in order benefit from
a cash back or buy without any money down you will need to purchase the property
in cash prior to mortgaging it.
Closed Bridge Finance will
provide you with the £80,000.00 to undertake the initial purchase of property from the
Vendor so that you now own the property.
We will then remortgage the
property with the advance from the mortgage company, this will include repaying the
bridging finance. Please see example below.
|
Property Purchased for |
£80,000.00
with bridging loan |
|
Property Remortgaged for |
£85,000.00*
= 85% of the market value (£100,000) |
| Return
of bridge loan |
£80,000 |
|
Cash Back to Purchaser |
£5,000.00 |
The above represents a very
simplistic example of a typical bridging finance scenario.
*Please
note the example does not take into consideration bridging fees
or
professional
fees.
To find out more about
our fees and charges please
click here
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