100% Bridging Loan Secured for Below-Market-Value Purchase in Liverpool

We helped our client acquire a residential property in Liverpool with 100% of the purchase price funded — thanks to a bridging loan structured against the property's true market value, not just the agreed purchase price. This case study explains how we structured the deal, overcame the challenges, and delivered a solution that required no client funds for the purchase.

The Challenge

Our client secured an off-market deal on a below-market-value (BMV) property in Liverpool with strong upside potential. But with a tight deadline and limited capital, they faced a number of challenges:

• Fast completion required — The vendor wanted a swift, no-fuss sale, ruling out traditional mortgage finance.
• Minimal capital available — The client wanted to avoid tying up personal funds to maintain liquidity for other investments.
• Lender valuation vs purchase price — Most lenders base loans on the purchase price, which would have restricted borrowing.

What the Client Needed

• 100% of the purchase price funded without using personal capital
• A quick and smooth completion process to meet the vendor's timeline
• A clear exit strategy for moving from bridging to term finance

Our Approach

1. Market value-based lending — We worked with a lender who based their loan on the open market value rather than the discounted purchase price. This allowed the client to acquire the property with zero capital input.
2. Coordinating a fast completion — We coordinated all parties — lender, solicitors, and valuers — to ensure the deal progressed quickly and met the seller's deadline.
3. Exit strategy planning — We planned the exit from the bridging loan from the outset, with the intention of refinancing onto term finance after the minimum holding period.

Key Considerations

Below-market-value purchases funded at 100% are possible, but they require specific conditions to be met:

• Genuine discount — The discount to market value must be genuine and supportable by an independent RICS valuation. Lenders will not accept an inflated valuation.
• Lender appetite — Not all bridging lenders offer market value lending. Knowing which lenders do, and what their criteria are, is essential.
• Speed matters — Off-market BMV deals often come with tight deadlines. Working with a broker and solicitor who can move quickly is a significant advantage.
• Exit route — Even with 100% funding, the lender needs to see a clear exit. Typically this involves refinancing onto a buy-to-let mortgage after a holding period of at least six months.
• Due diligence — As with any property purchase, thorough due diligence on the property, the area, and the rental market is important.

Outcome

The loan covered the full purchase price, enabling the investor to maintain liquidity for future deals. The client was able to act fast and secure a high-potential property before it reached the wider market. By leveraging the asset's market value rather than the purchase price, we enabled the client to maximise borrowing. We will also be helping the client exit the bridging loan onto term finance.

Frequently Asked Questions

What does below-market-value mean?

A below-market-value (BMV) property is one purchased at a price lower than its independently assessed open market value. The discount can arise from motivated sellers, off-market deals, auctions, or distressed sales.

How do lenders verify that a property is genuinely BMV?

The lender will instruct a RICS-qualified surveyor to carry out an independent valuation. If the valuation confirms the open market value is higher than the purchase price, the lender may base the loan on the higher figure.

Is 100% bridging finance available on all properties?

No. 100% of the purchase price can only be funded where there is a genuine discount to market value. The lender is still lending at a percentage of the market value — it just happens to cover the full purchase price because of the discount.

What is the minimum holding period before I can refinance?

Most buy-to-let lenders require a minimum holding period of six months before they will refinance a property. Some lenders may have different requirements, so it is worth checking with your broker.

Can I use this approach for any property type?

Market value bridging is available for residential, HMO, and some commercial property types. Lender appetite varies by property type and location, so it is best to discuss your specific deal with a broker.

What are the risks of 100% bridging finance?

The main risk is that the property does not refinance at the expected value, leaving a shortfall. Market conditions can change, and valuations are not guaranteed. Having a realistic assessment of the property's value and a backup plan is important.

Next Steps

If you are sourcing a BMV property or need 100% bridging finance, get in touch to explore your options. We can help structure a deal that gets you moving with confidence. You can also visit our bridging finance page for more information.