4. Auction finance

  • Can LendInvest provide a quote in advance of the auction?

    Yes, we can provide a decision in principle once the lot details are available confirming the maximum loan to value we will lend and the applicable rates. This decision in principle is subject to our valuation and legal due diligence; it is, therefore, at your own risk that you bid on the lot and exchange if the bid is won. You should complete your own due diligence in respect of the suitability of the property and title for lending purposes in advance of the auction which may include involving your own surveyor and solicitor.

  • Can LendInvest complete within the strict timescales required by the auctioneers?

    Yes. We are specialists in auction finance and can complete within the required timescales, which for most property auction lots is 28 days from the day of auction, and potentially much sooner. Most mainstream lenders cannot complete within this timeframe.

  • How do you fast track these applications?

    You will be allocated a dedicated case manager to progress your case and we will instruct our specialist valuers and solicitors who are experienced in auction finance. Your case will be prioritised to ensure it is ready to complete in time.

  • What if my initial choice of lender lets me down and cannot deliver the financing?

    If another lender is not delivering on the loan, we can provide a decision in principle within a few hours and then look to complete within a week. Most auction terms allow a notice period of up to 10 working days following the lapse of the initial period of completion (eg after 28 days), but the earlier you get in contact with us the better to ensure that we can get you your loan in time.

  • How much will the valuation and legals for these deals cost?

    We have fee scales for all of the professionals we use. If the security you are providing is residential we should be able to achieve the rates published on our website and we will pay 50% of the fee. If the security is not residential or it requires a specialist valuation (multiple units on one title, for example) we will get a competitive quote from our panel of valuers. An estimate of legal fees can be provided with our decision in principle.

  • Is the valuation amount the same as the winning bid amount?

    No, not necessarily. We will instruct an independent surveyor to visit the property and provide a vacant possession/bricks and mortar open market valuation on the property in its current condition. This valuation can be higher or lower than the winning bid amount and we will lend a percentage of this valuation.

  • Do you lend on investment/tenanted properties?

    Yes, we lend against tenanted properties, but we will lend against the vacant possession/bricks and mortar value of the property which may differ from the value with a sitting tenant.

  • What if I agree to buy an auction lot before or after the day of the auction? Is the loan still available under your Auction finance product terms?

    Yes, we can accept any purchase through an auctioneer under auction purchase terms on this product. If the purchase is not under auction terms, we might still be able to offer you a loan through our bridging finance products.

  • Do you accept search indemnity insurance on auction purchases?

    Yes, potentially. We prefer to receive the correct searches, and they often form part of the auction pack, but if they’re not available within the required timescales we can accept search indemnity insurance.

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