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Ascot Bridging Finance introduces a solution tailored for individuals looking to maximise their investments in the property market. Below Market Value Property Finance is a loan or a financing arrangement where the amount of funding provided is based on the actual market value of a property, rather than the lower purchase price at which the property is being acquired. This approach is particularly advantageous in scenarios where properties are being sold for less than their market value due to factors such as quick sales requirements, distressed sales, or unique opportunities that allow buyers to purchase at a discount.
Ascot is provided with a summary of the deal, reasons for wanting a bridging loan, the security available and a clear repayment strategy.
Ascot will provide a set of Heads of Terms outlining the key details to which we are happy to lend and the next steps to proceed to the next stage.
Ascot receives a fully completed application form and supporting documents for underwriting review and full due diligence.
Ascot will instruct both a Surveyor to provide a valuation report and a solicitor to undertake the required legal due diligence.
An Asset Manager will visit the property and discuss with the borrower their plans for the project, experience, exit strategy and the contractors they intend to use.
Your underwriter will present the case to the credit committee team detailing the due diligence undertaken to date and their rationale for approval.
Legal work is satisfied, security documents are signed and returned with funds released to the solicitors for completion.
Contracts exchanged with monies sent to the seller. You are now the legal owner of the property.
In traditional finance, the loan amount is typically based on the lower purchase price. So, for a property you’re purchasing for £225,000, under a standard finance product, you could be eligible for a loan up to £168,750.
With Below Market Value Property Finance, your loan is calculated based on the property’s higher market valuation, not the purchase price. This means for the same property, you could secure a loan of £225,000 — significantly more than with traditional property finance.
A comparative table or infographic can effectively illustrate these differences:
Financing Type | Valuation Price | Purchase Price | LTV | Loan Amount |
Traditional Property Finance | £300,000 | £225,000 | 75% | £168,750 |
Below Market Value Property Finance | £300,000 | £225,000 | 75% | £225,000 |
This table clearly highlights the advantage of Below Market Value Property Finance, demonstrating how investors can leverage the full market value of their investment property, rather than being constrained by the purchase price. For a property with a £300,000 valuation, this financing option provides significantly more capital, offering £225,000 in funding compared to £168,750 with traditional financing. This enhanced financial leverage is crucial for investors aiming to maximise their portfolio’s growth and profitability, providing a robust foundation for both short-term flips and long-term investment strategies.
Our process is streamlined to ensure efficiency and clarity at every step:
Ascot Bridging Finance stands at the forefront of property finance innovation, and our Below Market Value Property Finance option exemplifies our commitment to your investment success. Kevin Gibson and the entire team invite you to unlock the full potential of your property investments with us. For more detailed inquiries or to start your application, please contact our expert team today.
A property is considered 'below market value' when it’s available at a price less than its current assessed market value, often due to quick sale requirements or other unique circumstances.
This product is ideal for property investors, developers, and landlords, regardless of whether you’re seasoned in the field or new to property investment.
Flexible repayment strategies, include bullet payments or monthly interest payments and retained interest deducted from the gross loan depending on what best suits your investment model.
Streamlined process can ensure funds are available as swiftly as within 7 days from the application approval, subject to all requirements being met.
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