Signature Property Finance has completed a £102,750 bridging loan to support the auction purchase of a three-bedroom semi-detached house in Wiltshire, enabling experienced investors to acquire and refurbish the property using their own capital for improvement works.
Introduced once again by Ben Gauci of Cornerstone Finance, the transaction marks the third successful completion between broker and lender in recent months, demonstrating how established relationships enable swift execution when opportunities arise.
Experienced investors with financial capacity
The borrowing company is led by two directors with a substantial residential property and strong personal finances. The duo’s experience and financial position enables them to fund the planned improvement works separately, requiring only acquisition finance from Signature.
The property was secured at auction for £137,000, reflecting its condition and the competitive nature of the sale process. Signature’s facility is set at 49% loan-to-value against the current market value of approximately £208,000, providing conservative leverage while the borrowers undertake refurbishment works.
The 12-month term accommodates the improvement programme and subsequent disposal strategy, with the borrowers planning to invest in targeted upgrades to bring the property to market standard.
Market town with strong regional connections
The property in Wiltshire is positioned between Chippenham and Marlborough with good access to the M4 corridor. The historic town serves both local residents and commuters working in nearby centres including Swindon, Bath, and Bristol, all within comfortable driving distance.
The town’s established residential market, combined with its transport links and local amenities, supports consistent buyer interest for properties offering good value compared to higher-priced locations closer to major urban centres.
Sale-focused with option of refinance
The primary exit route is open market sale following completion of the refurbishment works. The property’s post-improvement value and the borrowers’ self-funding approach to works provides flexibility in timing the disposal to achieve optimal returns.
As a secondary option, the property demonstrates robust refinancing potential, with rental comparables indicating market rents that would provide substantial interest coverage above typical lending requirements. This dual-exit structure offers the borrowers strategic options at completion.
Ben Gauci of Cornerstone Finance commented: “This is our third transaction with Signature in quick succession, and each one has reinforced why we keep coming back. The speed of response and decision-making makes a material difference when you’re dealing with auction deadlines.
“These borrowers have the financial strength to fund the works themselves, which simplifies the structure considerably. They saw value in this property at auction and moved decisively to secure it.
“What’s valuable about working repeatedly with the same lender is the efficiency you gain. There’s no relearning each other’s processes or preferences – Josh and I both know what’s needed and can move in a way that’s mutually-beneficial.”
Josh Barrett, Relationship Manager at Signature Property Finance, said: “The steady stream of recent completions says a lot about how our relationship is functioning. Ben knows Signature’s criteria inside out now, so the cases he brings forward are typically solid from the outset.
“This particular deal is straightforward as acquisition funding only with self-funded works. The borrowers have genuine financial capacity and a sensible plan for the property, as well as a low risk profile.
“Repeat business is the real test of whether you’re delivering properly. When brokers return consistently, it means you’re meeting commitments and making their jobs easier. That’s the standard we hold ourselves accountable for and can say we have achieved.”