Auction Property Purchase & Refinance

Background

A client approached Ramsay & White after successfully securing a substantial property at auction. The building comprised a multi-unit block containing four residential flats. Following the auction purchase, the client wanted guidance on how best to structure the project in order to maximise the value of the asset and create a clear refinance strategy once the works were complete.

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The Strategy

After reviewing the project, the recommended approach was to split the title on entry, refurbish the flats, and then refinance the property once the works had been completed. This structure allowed the client to unlock additional value in the building while creating a more attractive proposition for long-term lenders at the refinance stage.

‍Key Figures

• Purchase Price: £660,000Refurbishment
• Budget: £200,000
• Projected Gross Development Value (GDV): £1.2 million

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The Challenge

Auction purchases often operate on strict timelines, meaning the deal had to be structured quickly and efficiently. In this case, the title split needed to be completed within the auction timeframes while also ensuring that the right funding partner was in place to support the project. Coordinating the legal work, funding structure and project timeline required careful planning to ensure the transaction could progress smoothly.

The Outcome

With the right structure in place and the appropriate funding support secured, the transaction successfully completed. The client is now progressing with the refurbishment works, with the longer-term objective of refinancing the property once the improvements have been delivered.

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Need Support With Property Finance?

If you are purchasing property at auction, funding a refurbishment project, or planning a refinance, the Ramsay & White team can help structure the right finance solution for your project.

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