District & County Investments (DCI) has completed a £370,000 bridging finance facility for a repeat borrower buying a four-bedroom detached property in Luton below market value (BMV).
The borrower agreed to buy the property for £370,000 ahead of auction, with the deal introduced by broker Tushar Gadikar. DCI’s facility matched the price, covering 100% of the purchase cost.
The borrower had used DCI before for another property acquisition, and Gadikar has also handled earlier transactions with the lender.
Under DCI’s BMV product, bridging finance for qualifying acquisitions is assessed against the market value of the property rather than the price paid. That allows the lender to consider funding up to 100% of the purchase price where the buyer secures a sufficient discount.
“BMV transactions require us to understand how the purchase price has been arrived at and satisfy ourselves that the underlying value supports the facility,” said Michael Clifford, commercial director at DCI.
“That means looking at the individual transaction rather than applying a standard approach based solely on the price being paid.”
“The fact that both the borrower and broker have returned to DCI is particularly important to us. They know how we approach these cases and, in turn, we understand what they need from a lender, which helps make the process straightforward for everyone involved.”
“Being able to bring a BMV case to a lender that understands the difference between the purchase price and underlying market value is important,” Gadikar noted. “Having worked with DCI before, I knew the team would properly assess the transaction and give us a clear answer on what could be achieved. That consistency is one of the main reasons I was comfortable bringing another case to DCI.”
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
