Thatched Auction Purchase

Thatched holiday let auction purchase: 100% funding via a second charge

Our client wanted to buy a thatched holiday-let property at auction but needed 100% funding to do it, and had never bought at auction before. We arranged bridging terms ahead of the sale and structured the funding around a second charge on the client’s own home, rather than the purchase alone.

We secured 100% of the purchase price by structuring a second charge against the client’s main residence, and completed the purchase with confidence despite it being their first time buying at auction.

The scenario

Our client approached us before the auction, asking us to review the property and obtain bridging terms ahead of the sale, rather than waiting until after a winning bid to start arranging finance. They needed 100% funding for the purchase, which meant looking beyond a standard loan against the property itself.

The challenges

1. Needing 100% funding, not a standard LTV. A conventional loan against the auction property alone wouldn’t cover the full purchase price, so the case needed a funding structure that went beyond a standard purchase loan.
2. First-time auction nerves. As their first auction purchase, the clients were particularly concerned about the fixed completion deadline and what would happen if funding wasn’t ready in time.
3. Arranging terms ahead of the sale. Reviewing the property and securing bridging terms before the auction, rather than after, meant doing the groundwork on a tight pre-sale timeline so the clients could bid with confidence.

The solution

To achieve 100% funding, we structured the purchase around a second charge against the client’s main residence, using equity in their existing home to cover the full purchase price rather than relying on the auction property alone as security.

Because this was the clients’ first auction purchase, reassurance mattered as much as the structure itself. Our track record of 100% completion on auction purchases gave them the confidence to proceed, knowing the deadline pressure that comes with buying at auction had been planned for in advance, not scrambled together after the fact.

The outcome

The purchase completed successfully. The keys are now in the client’s hands, with works underway to bring the property forward as a holiday let.

Frequently asked questions