Auction Finance

Derelict Bungalow with Development Potential Purchased at iamsold Auction

£178,000 · 10 months · 0.96% pm. A developer spotted a derelict bungalow in a desirable East Midlands village with significant development potential going to iamsold's online auction.

Category
Auction Finance
Loan Amount
£178,000
LTV
62%

The Client

Developer spotted a derelict bungalow

The Challenge

A developer spotted a derelict bungalow in a desirable East Midlands village with significant development potential going to iamsold's online auction. He planned to demolish and rebuild a larger dwelling. Auction finance with a development element was required.

Our Solution

Doulton assessed the site's development potential alongside the existing security value and structured a bridge that would allow demolition and early groundworks during the bridge term, with a development facility to follow.

The Outcome

Site purchased at auction. Planning consent for a 4-bedroom replacement dwelling obtained during the term. Development facility arranged for the build phase, with the bridge redeemed by the development lender. Key highlights: Auction and development potential assessed together; Planning obtained during bridge term; Seamless progression to development facility.

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