Unusual property up for auction? Bridging finance could be the solution
Property auctions often sell unusual properties. In 2016, a World War One sea fort was sold for £500,000, but for that price, it needed a lot spending on renovation. A village hall in Terrington St Clement, Norfolk was converted into an indoor skate park and offered for sale to
skateboarding enthusiasts. A home in Huddersfield is hidden inside a hill. It has an indoor swimming pool and many rooms. It sold for about £700,000 at auction.
A fort in Pembroke was for sale, complete with its own island. It had a guide price of around £550,000, but the new owner needed to spend a considerable sum on making it habitable.
In 2018, what is thought to be the last remaining property owned by the musician Prince is being auctioned. This private retreat is on the Turks and Caicos Islands. It is located in 5.7 acres of land and surrounded by water on three sides. The property includes two private beaches, a marina and a long driveway painted in Prince’s favourite colour, purple. The auction is by sealed bids and ends in July 2018. The winning bid is expected to be at least $16 million.
Many unusual properties are not eligible for a mortgage or require construction work to make them suitable. Bridging loans can be used to purchase property sold at auction and can also fund conversion work, especially if a security property can be offered. It’s possible for the total bridging finance to be more than the property is valued at auction if this is the case. It’s ideal for short-term finance that can be used until more long-term finance is arranged.