Avamore Capital has completed a £210,000 bridging finance deal for an auction property purchase within 17 working days from acceptance of Heads of Terms, according to the short-term lender.
The transaction was finalised four working days after the case transferred to the underwriting team, highlighting the compressed timelines often required in auction property purchases.
The loan was secured against a property requiring full internal refurbishment, with no structural works planned. The borrower’s exit strategy was to sell the property upon completion of the works.
Auction deadline pressures
The primary challenge came from the fixed auction deadline, which required coordination between legal and financial parties. “This case demonstrates the importance of speed, communication, and alignment across all stakeholders,” said Samantha Graydon, relationship manager at Avamore Capital.
Anna Zhabotynska, underwriter at Avamore Capital, noted that the compressed timeline did not reduce underwriting standards. “Despite the compressed timeline, it was essential that we maintained a thorough and disciplined underwriting approach,” she said.
The deal comes as UK property transactions face broader challenges, with auction purchases requiring certainty of funding to meet fixed completion dates. The average time for property transactions to exchange now exceeds 17 weeks, making bridging finance an increasingly common tool for auction buyers working to tighter deadlines.
Market context
Demand for bridging finance at auction continues to grow, with borrowers and brokers prioritising certainty of funding and speed of execution. For auction purchases, the ability to complete within the required timeframe often determines whether a transaction proceeds or fails.
The case represents a typical bridging finance structure for auction properties, where buyers require short-term funding to complete purchases before arranging longer-term finance or executing their exit strategy.
