What Is Commercial Auction Finance?
Commercial auction finance is in short commercial property put up for sale at auction. This wouldn’t appear as a standard auction with people standing around making bids such as a motor auctions or residential lower value property auctions. Commercial auctions will take place in a premises and also there will be a majority of bids being submitted via online bids and also via telephone bids from potential purchasers. Due to the short timescale for the purchase and completion of an auction property, long term financing such as mortgages can be difficult to put into place quick enough to meet deadlines. However, there are other options of financing your purchase. Auction finance is really another name for bridging loans or bridging finance. Bridging loans are used to purchased properties at auction as they can comfortably be completed in the 28-day completion timescale. Bridging loans are ideal for for auction purchases, making them a perfect financing option for a commercial property purchase. Commercial auction lending or commercial bridging finance does provide a quick turnaround of funds, which can be agreed before, during or after the auction, to guarantee funds will be available in time for completion. This then allows you time to arrange a mortgage or another long term funding solution that is right for you.
What are the Key Features of Commercial Auction Finance?
- Enables individuals to purchase auction property even if they do not have the cash in the bank.
- Deposit requirement of only 30%
- 70% financing from the lender
- Finance can be arranged in most cases within 5 days, and in some cases as little as 48hrs
- Finance extends after 21 day completion requirement.
- Lending secured against the property.
- Allows buyer to be in a position equivalent to a cash buyer.
What are the Commercial Auction Finance Lending lending criteria?
- Rates from 0.75%
- Upto 75% LTV
- Minimum Loan £100,000
- Maximum Loan £500m
- NO Minimum Term
- NO Exit Fees
- NO Early Redemption Fees
- NO Hidden Fees
- All Geographical Locations
- All Auction Property Considered
- Fast Funding Availability & Instant Terms
What information would I need to provide for Commercial Finance Lending ?
- Applicant name or Ltd Company number and details.
- Full property address.
- Auction company purchased through.
- Personal or Directors & significant shareholders CV’s. If company purchase.
- Proof of address.
- Proof of Identification.
- Proof of deposit funds.
- Detailed costs for repairs or renovation.
- Schedule of proposed works.
- Details of the professional team (contractor, architect, structural engineer)
- Sales method on completion of works.
Always keep in mind that commercial auction finance with have to be replaced with commercial term finance as auction finance is just a short term financing solution.
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