Auction Finance
Bid with Confidence, Complete with Certainty

Property auctions offer a unique opportunity to acquire assets with significant potential, often at highly competitive prices. However, this environment operates under immense time pressure. The fall of the hammer creates a legally binding contract, leaving you with a strict deadline—typically 28 days—to produce the full purchase funds. In this high-stakes scenario, traditional finance is simply not an option.
 

This is where specialist Auction Finance becomes essential. At Knightly Group, we provide rapid, decisive funding solutions specifically designed for the auction market. We act as your strategic finance partner, working with you to secure a formal funding offer before you bid. This preparation gives you the critical advantage of being able to compete on a level playing field with cash buyers, bidding with absolute certainty and eliminating the risk of funding failure post-auction.

 

The Strategic Advantage: Why Arrange Finance Before You Bid?

 

Walking into an auction room with your funding pre-arranged transforms your position from a hopeful speculator into a serious contender. Our pre-auction service is designed to deliver several key advantages:

• Bid with Absolute Certainty: Knowing the exact budget you have and that the funds are secured removes all financial guesswork and risk from the bidding process.

• Compete Like a Cash Buyer: Having funding in principle gives you the power and confidence to bid decisively against cash purchasers and other seasoned investors.

• Protect Your Deposit: The greatest risk in auction buying is the failure to complete within the 28-day window, resulting in the forfeiture of your 10% deposit. Our service is designed to mitigate this risk entirely.

• Seize Opportunities: Our rapid process ensures you can act on any lot in the catalogue that fits your strategy, without worrying about financing constraints.

 

Our Pre-Auction Process: A Blueprint for Success

 

We have refined a four-step process to ensure you are perfectly positioned for auction day.

1. Initial Consultation & Budgeting: We begin with a detailed discussion to understand your investment strategy, review the auction catalogue, and establish a clear, realistic bidding budget.

2. Securing Finance in Principle: Leveraging our extensive panel of specialist auction lenders, we secure a formal 'in-principle' offer for you. This is a firm commitment from a lender to fund your purchase, subject only to a satisfactory valuation.

3. Bidding with Confidence: You attend the auction empowered with the knowledge that your funding is already arranged.

4. Post-Auction Execution: The moment you win a lot, we activate the process. We immediately engage with the lender, solicitors, and valuers to drive the transaction forward, ensuring a smooth completion well within the required timeframe.

 

Key Financial Features & Criteria

 

Auction finance is fundamentally a fast and flexible bridging loan, tailored for the specific demands of the auction house.

Specialist Feature: Below Market Value (BMV) & 100% Funding A key advantage of our specialist lender access is our ability to arrange Below Market Value (BMV) Property Finance. For investors who have skilfully negotiated to buy a property for less than its open market value, this product is transformative.

• The Valuation Principle: The foundation of this product is that lending is secured against the property's certified Open Market Value (OMV), rather than the negotiated purchase price. This principle allows the discount you negotiate to be instantly recognised as equity, with the loan calculated against the asset's full intrinsic worth.

• Achieve 100% Loan to Cost: This structure can, in the right circumstances, allow you to borrow 100% of the purchase price, completely funding the acquisition.

• Incorporate Additional Costs: If the total loan does not exceed the lender's maximum LTV (e.g., 70-75%) of the higher market value, the facility can be structured to include all your construction and refurbishment costs. The interest for the loan term can also be "retained" or rolled-up within the loan, meaning no monthly payments are due.
   

Further key features include:

• Speed of Funding: This is the most critical feature. Our lender partners are geared for speed, with the ability to release funds in as little as 5-10 working days.

• Loan Term: Facilities are short-term, typically ranging from 1 to 24 months. This provides ample time to complete any planned light refurbishment and to arrange your exit, which is usually a sale or a refinance onto a long-term mortgage.

• Property Types: Lenders are extremely flexible and will fund almost any type of property, including those considered "unmortgageable" by mainstream banks. This includes residential, commercial, or semi-commercial assets, land, and properties in a poor state of repair.

• Borrower Structures: We can arrange finance for private individuals, partnerships, and corporate entities (SPVs).
   

In the high-stakes auction environment, preparation is everything. Partnering with Knightly Group means transforming auction uncertainty into a calculated and confident investment strategy. Contact us before your next auction to ensure you are perfectly positioned for success.