Overview
Silver Oak Capital was engaged to source and structure an auction bridging facility for an experienced property investor who had just won a residential lot at auction in the North West of England. The client had 20 working days to complete, and the property was in an unmortgageable condition — a combination that ruled out mainstream finance and made speed, not just price, the deciding factor.
Challenges
Auction purchases carry a specific set of pressures that don’t apply to a standard purchase, and this transaction had all of them:
- A hard 20-working-day completion deadline, fixed the moment the hammer fell, with no room to renegotiate or extend.
- The property was in a genuinely unmortgageable state, meaning most high-street lenders were never going to be an option, bridge or otherwise.
- With no chain and no seller flexibility, every day counted; sourcing, underwriting, and legal work all had to run in parallel rather than in sequence.
Solution Provided
Silver Oak Capital moved immediately on being instructed, going to market to identify a lender with both the risk appetite for an unmortgageable asset and the operational speed to meet the auction deadline. We secured a 90% LTV auction bridging facility on a 6-month term, structured specifically around:
- A clear refurbishment-and-refinance exit onto a BTL mortgage, which we stress-tested with the client before approaching lenders.
- A lender comfortable taking security over a property in its current condition, rather than requiring works to be completed first.
- A completion timeline that matched the auction’s 20-working-day requirement, with valuation, underwriting, and legal work coordinated to run concurrently.
As the advisor coordinating the transaction, we managed the process end-to-end — from initial lender approach through to instruction of solicitors and completion — ensuring the client’s purchase completed on time and with no last-minute surprises on terms.
Conclusion
Auction finance rewards buyers and advisors who move early and coordinate well. This transaction reflects Silver Oak Capital’s ability to structure funding for auction purchases under real time pressure, even where the underlying asset falls outside standard lending criteria. For property investors considering an auction purchase, the lesson is straightforward: have your finance lined up and your advisor engaged before you bid, not after the hammer falls.
