100% Purchase Price Plus Day-One Costs Secured — £856,000 Bridging Loan

We completed a standout bridging loan for a client who secured an off-market investment property at a discount — and needed a finance solution that moved as fast and as smartly as they did. This case study explains how we structured a bridging loan covering 100% of the purchase price plus additional funds for stamp duty and legal costs on day one.

The Challenge

The client had secured an off-market property at a price below its open market value. They needed to complete quickly to take advantage of the opportunity and wanted to keep their liquidity fully intact — meaning they did not want to use their own cash for the deposit, stamp duty, or legal costs.

What the Client Needed

• 100% of the purchase price covered by the loan
• Additional funds released on day one to cover stamp duty and legal costs
• Rapid execution to meet tight acquisition deadlines
• A structure that preserved their liquidity for future opportunities

Our Approach

1. Leveraging the discount — The property was purchased at a price below its open market value. This was the key to unlocking the structure: a strong off-market purchase at a discount, backed by our ability to identify the right lender who would base the loan on market value rather than purchase price.
2. 100% of purchase price funded — We secured a lender willing to cover the entire purchase price, meaning the client had no cash tied up in the acquisition.
3. Day-one costs covered — We arranged for additional funds to be released on completion to cover stamp duty and legal costs, so the client walked into the deal with zero capital committed.
4. Rapid execution — We coordinated all parties to meet the tight deadline, ensuring the deal completed on time.

Key Considerations

Deals structured at 100% of purchase price are the exception rather than the rule. Here are some factors that make this type of structure possible:

• Below-market-value purchases — The loan is based on the property's open market value, not the purchase price. When there is a genuine discount, this creates headroom for higher leverage.
• Off-market sourcing — Properties bought off-market can often be acquired at a discount, but the discount needs to be genuine and supportable by a RICS valuation.
• Lender selection — Not all bridging lenders will lend at 100% of purchase price. A specialist broker with access to the right lenders is essential for this type of structure.
• Speed of execution — Off-market deals often come with tight deadlines. Having a broker who can move quickly and coordinate solicitors, valuers, and lenders is important.
• Exit planning — Even on a fully funded deal, the exit strategy still needs to be clear. The lender will want to know how the bridging loan will be repaid.

Outcome

We secured the entire purchase price plus additional funds for stamp duty and legal costs on day one. The client walked into the deal with zero capital tied up, keeping their liquidity intact and enabling them to focus on future opportunities. The total facility was £856,000.

Frequently Asked Questions

Is it really possible to get 100% of the purchase price funded?

Yes, in certain circumstances. This typically requires a below-market-value purchase where the lender bases the loan on the open market value. The gap between the purchase price and the market value provides the leverage needed.

How do lenders determine market value?

Lenders instruct a RICS-qualified surveyor to carry out an independent valuation. The valuation is based on comparable sales and market conditions, not the agreed purchase price.

What is an off-market property?

An off-market property is one that is not publicly advertised for sale. These deals are typically sourced through personal networks, agents, or property sourcing companies and can sometimes be acquired at a discount to market value.

Can stamp duty and legal costs really be included in a bridging loan?

In some cases, yes. Where there is sufficient equity headroom (because the property is being purchased below market value), lenders may release additional funds on day one to cover these costs.

What is the typical interest rate on a bridging loan?

Bridging loan interest rates vary depending on the lender, the LTV, the borrower's profile, and the complexity of the deal. Rates are typically higher than standard mortgages because of the short-term nature and speed of the product.

How quickly can a bridging loan complete?

Bridging loans can sometimes complete within two to four weeks, though this depends on the lender, the property, and how quickly legal and valuation work can be progressed.

Next Steps

If you are looking at an off-market acquisition or need high-leverage short-term finance for your next deal, get in touch to see what is possible. You can also explore our bridging finance page or find out how we work.