Bridging loan/auction finance brokers

ellecarumba

Never dreamed of buying a house at auction but my "dream house" in terms of location has come on sale via auction after the death of its owner.
Dream house guide price is 700,000 which I would class as low end of its fair valuation.
Auction is in 3 weeks.
I have around 150,000 in cash so could pay the 10pc deposit and I could probably temp borrow another 50k in cash if required.
My current home has just gone on sale, there were 5 viewing requests within 12 hours of it going online so hopefully good interest but it isn't going to be quick enough of course.
Once my home sells, I'd need a mortgage to cover around 35-45pc of the value of Dream Home (which is absolutely fine on my salary, no issues there) but were to buy it at auction, I would obviously need to take out some financing to cover around 70-80pc of the value of Dream Home UNTIL my current home sells. So this would be some kind of bridge loan/auction finance scheme, hopefully for no more than 6 months, by which time I sell my current home, and can then remortgage Dream Home onto a more conventional mortgage
Normally I am a very risk averse person but this house is available once in a blue moon....
My normal mortgage broker doesn't do this kind of thing. Can anyone advise on brokers/advisors? Or have any other words of wisdom/warning/encouragement?
I know it might be a bit of a pipe dream but I'd like to explore it - I think I might regret not trying at least.
Thanks very much

davidmcn

Is there any obvious reason why it's going to auction? Sometimes it's just because the "normal" market is particularly slow, but it can also indicate a problem. Bear in mind you'll need to do all your due diligence before the auction, so legal/surveyors costs are down the drain if you get outbid.

foxy-stoat

I wouldn't risk owning 2 properties and trying to pay high bridging loan finance without even someone about to exchange let alone offer on the table.

I had 6 people viewed my place on the first weekend it went on sale, total of 45 viewings and it sold after 6 months. 

ellecarumba

Auction:  been left to a collection of more distant relatives who want a fast sale.
It's structurally sound (took a structural engineer relative round to look at it and effectively do me a survey) but not had much done to it since the 1970s so will need full internal renovation. Nothing obviously wrong with the roof from external viewing although I daresay it will need some work at some point.
It currently only had an outdoor toilet - apparently she preferred it that way as it was then on the ground floor. It does have an indoor bathroom (lovely retro avocado suite, big room). Boiler relatively modern (last ten years anyway) - they removed the cooker when they emptied it so I guess currently it has no cooking facilities but the connection for gas etc is there. Kitchen sink and undersink units still there, water is running fine.
I would intend to live in it while doing it up - there is no damp, leaks, subsidence, rot or anything like that. It's just......very 1970s.

Have registered for the legal pack but its not out yet - but I know the street (friends live on it) and unlikely to be anything super weird - standard Victorian freehold house, no one else had any quirks in legal issues when buying. Obviously would need to be certain of this but it seems relatively unlikely.

Auction is 3 weeks away - it is possible I might have an offer by then. Estate agent (and I know they may not always be 100pc reliable) reckoned average time to offer round here is 2-4 weeks at the moment - it's a fairly bubbly bit of London...

Thrugelmir

Sit down when you enquire about the cost of bridging finance. Suspect that you'll be in for shock. 

amnblog

 I imagine would imagine you will need to offer up both the purchase property and your current home as security. You need sufficient security and a sensible ‘exit plan’, in other words how will you pay the borrowing back? If by sale, the Lender concern themselves with saleability of your home

payless

Might be doable ( I’m out of touch these days though)  but can bu costly ( fees and rate) and lots of work. 

Been to a number of auctions with cash / financing in place  only to see them go 25-30%+  over Guide. Then  once  .. dream house but thought surely would will end up going way over So didn’t bother , for it to sell well within what I would have paid