£570k Fast Track Purchase Bridge at 75% LTV
Colenko completed a £570,000 Fast Track bridging facility to fund the purchase of a detached residential property. The applicant had been let down by a term lender and needed to complete quickly to secure the purchase. We needed to establish whether the case could be supported at 75% LTV using an AVM, then reduce delays across the valuation, underwriting and legal process.
Deal Snapshot
| Borrower type | Individual owner |
| Loan product | Fast Track Bridging Loan |
| Facility size | £570,000 |
| Security | Detached four-bedroom residential property |
| Location | Woking |
| Leverage | 75% LTV |
| Rate | 0.99% per month |
| Term | 12 months |
| Exit strategy | Refinance onto term mortgage |
| Time to Completion | 48 hours from receipt of application form |
| Special Feature | AVM and Title Insurance |
Borrower Profile
The borrower had a good credit profile, owned an estate agency and owned further investment properties. This was important because the requested leverage was at the upper end for a transaction using an automated valuation rather than a physical inspection.
The Opportunity
The applicant had been let down by a term lender and needed to complete the purchase very quickly or risk losing the property. Fast Track provided a way to secure the acquisition and give him a 12-month term in which to refinance onto longer-term funding. The commercial focus was less about creating a complicated structure and more about providing certainty of completion.
Key Challenges
The main challenge was that we needed to complete very quickly. There was also an outstanding OS1 search result. Existing priority searches relating to the TP1 and easement meant the result had not yet returned, although the Land Registry daylist showed that the search had been undertaken in the lender’s favour and the priority position was protected.
Colenko’s Approach
Colenko looked beyond the borrower’s credit profile and assessed the transaction in the round: the asset, the planned works, the completed value and the proposed exit.
The conversion from a two-bedroom terrace to a five-bedroom HMO gave the asset a clear income-led rationale. With the completed value and planned term HMO refinance supported, the requested leverage could be assessed in context rather than treated as a standalone risk.
The facility was then structured around the borrower’s actual funding requirement. Colenko provided a £98,000 day-one gross loan to release capital, alongside a £96,000 drawdown facility to fund the refurbishment works.
This allowed the borrower to access capital at the start of the transaction, while keeping the works funding tied to the progress of the conversion.
Execution
Underwriting began as soon as the application form arrived. Rather than working through each stage in turn, valuation, underwriting and legal work were pushed forward together, with the AVM removing the wait for a conventional valuation and title insurance helping to shorten the conveyancing timetable.
The Outcome
Colenko delivered a £570,000 bridging facility within 48 hours, allowing the applicant to secure the purchase after the original term lender had failed to provide the funding needed in time.
What this Demonstrates
- Completion within 48 hours is possible if you properly assess a case and commit from the outset.
- Fast completion is as much about mindset as anything else. Having taken on a case, we take the stance that any challenge can be dealt with and overcome, rather than looking for excuses.
- Using an AVM is essential to getting a Fast Track case though.
- Title insurance removes unnecessary legal delays where the completion timetable cannot accommodate a conventional process.
For more on funding where completion timescales are critical, see our Fast Track page.