DCI completes £370,000 bridging deal for BMV acquisition

District & County Investments (DCI) has completed a £370,000 bridging facility to support a repeat borrower with the below market value (BMV) purchase of a four-bedroom detached property in Luton.

The borrower agreed to acquire the property for £370,000 ahead of auction, with the deal introduced by repeat broker Tushar Gadikar.

The transaction continues DCI’s relationship with the borrower, having previously supported the borrower with another property acquisition.

DCI’s BMV product allows qualifying acquisitions to be assessed against the market value of the property, enabling the lender to consider funding up to 100% of the purchase price where an asset is being acquired at a sufficient discount.

Michael Clifford, commercial director at DCI (pictured above), said: “BMV transactions require us to understand how the purchase price has been arrived at and satisfy ourselves that the underlying value supports the facility.

“That means looking at the individual transaction rather than applying a standard approach based solely on the price being paid.

“The fact that both the borrower and broker have returned to DCI is particularly important to us.

“They know how we approach these cases and, in turn, we understand what they need from a lender, which helps make the process straightforward for everyone involved.”

Tushar added: “Being able to bring a BMV case to a lender that understands the difference between the purchase price and underlying market value is important.

“Having worked with DCI before, I knew the team would properly assess the transaction and give us a clear answer on what could be achieved.”