Bridging lender completes £490,000 auction finance in four days
Bridging lender WSP Capital has completed £490,000 of auction finance at 75% loan-to-value within four days of issuing its formal offer, after the borrower’s original lender withdrew shortly before the completion deadline.
The transaction was arranged through Churchbridge Capital, WSP Capital’s exclusive origination and packaging partner, following an introduction from Golden Trust Capital. The borrower faced losing their deposit if the purchase failed to complete on time.
Tight deadline following lender withdrawal
According to Christopher May at Golden Trust Capital, the original lender withdrew on the day the client’s extension expired. WSP Capital approved the replacement facility and completed the loan within the four-day window remaining before the auction deadline.
The case required enhanced anti-money laundering due diligence on an individual connected to the transaction, due to a property sale in a higher-risk jurisdiction forming part of the background. An existing valuation report also required retyping for WSP Capital’s reliance, which London’s Surveyors and Valuers delivered within 24 hours.
Bridging finance market context
The transaction highlights the time-sensitive nature of auction finance in a property market where UK property transactions have shown volatility. Bridging lenders have increasingly positioned themselves as alternative funding sources when traditional lenders withdraw or fail to meet completion deadlines.
George Wall, managing director of WSP Capital, said the speed came from identifying issues on the first call and dealing with them in parallel rather than in sequence. He noted that because Churchbridge Capital was structuring the case from the outset, questions were answered before the offer was issued, allowing lawyers to move directly to documentation.
Robert Feldman of London’s Surveyors and Valuers confirmed the firm retyped the existing report within 24 hours to meet the deadline.
The case demonstrates the operational requirements for bridging lenders operating in the auction finance segment, where completion deadlines are fixed and delays can result in lost deposits for borrowers. The ability to complete enhanced due diligence and documentation within compressed timeframes has become a differentiating factor as alternative lenders expand their market presence.
