Auction Bridging Loan Formby

Formby (on the outskirts of Liverpool) is not the typical place you would expect to find a property up for auction, however it’s not all Premier League footballers and reality stars/influencers who live there and just because it’s an affluent area does not mean that homeowners in that region are not suffering financial hardships just like everybody else.

Below we give an example of a large executive style property that had been repossessed by the mortgage lender and was now being auctioned for sale through one of the online auction portals.

Address of Property Being Auctioned

Shireburn Road, Formby, L37

Property Type

A 7 bedroom and 7 bathroom detached property right in the heart of Formby and near to Formby golf club. The property was being sold at auction with a guide price of £1,750m and comparable evidence suggests that the guide figure was correct. However, because this is a large single unit, the market for buyers at this level is much smaller than say the first time buyer sector.

How Breeze Capital helped the buyer

The property eventually sold at auction for £1,550m and the buyer paid his 10% deposit on the day with the balance to be paid within 28 days or he would be penalised. We provided a bridging loan of £1,070m with a 9 month term. The buyer then rented this property to Liverpool Football club on a rolling 12 month contract at £17,000 per month and repaid us by refinancing our loan with a high street bank.

Since this loan completed, we have done a similar bridging loan transaction with the borrower, also in Formby and again with the same result. The only difference being is that this second loan was a straightforward purchase, not an auction finance purchase. We also show you how a bridging loan can help you invest in property in Liverpool and Merseyside.

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