Auction Finance in London
CoreFi arranges auction finance, short-term bridging built around auction completion deadlines, for London buyers, principally limited companies. We match your case to lenders who fund auction purchases across the capital. Rates, loan-to-value and timescales are indicative and depend on the lot, your exit and lender appetite.
Buying at auction means the contract is binding the moment the hammer falls or the online timer ends. You pay a deposit, usually 10 per cent, on the day, and you complete within the timescale in the legal pack, commonly 28 days and sometimes less. A conventional mortgage rarely moves that fast, which is why auction purchases are usually funded with bridging arranged around the deadline. London's auction rooms carry a distinctive mix: short-lease flats that mainstream lenders decline, ex-local-authority units in large blocks, mixed-use lots with a shop below and flats above, probate stock and commercial buildings on the City fringe and in the suburbs.
CoreFi is a commercial finance broker, not a lender. We work with buyers, principally limited companies, to understand the lot and the exit and match the case to lenders whose criteria fit. We do not lend and we do not decide the outcome. Whether finance is offered, and on what terms, depends on the property, your exit and each lender's appetite at the time. Any rate, loan-to-value figure or timescale on this page is indicative and for illustration only; nothing is guaranteed until a lender formally offers.
- 1
Talk to us before you bid
Share the lot details and legal pack, the price you expect to pay, your deposit and your exit. Doing this before auction day means the finance is shaped around the deadline rather than scrambled after it.
- 2
We match you to lenders
CoreFi identifies lenders on our whole-of-market panel who fund the asset type and complete on auction timescales. We focus the case on lenders whose criteria fit rather than sending it everywhere.
- 3
Bid, then complete inside the deadline
If your bid wins, the lender instructs valuation and legals immediately. Any timescale is indicative and depends on the lender, the valuation and the legal work, which is why the groundwork happens before the sale.
What London buyers use auction finance for
The classic London auction play is the short-lease flat: a lease under 80 years is hard to mortgage conventionally, so it sells at a discount at auction. Buyers complete with bridging, extend the lease through the statutory route, then refinance or sell at the improved value. Beyond that we see ex-local-authority flats in larger blocks, where some term lenders are cautious and bridging fills the gap; mixed-use high-street lots, a shop with uppers, bought for income or conversion; probate and receiver sales needing modernisation before they are lettable; and small commercial buildings bought for owner-occupation or repositioning. In each case the lender is funding the deadline, and the exit, a refinance or a sale, is what repays them.
Completing on a London auction deadline
The major auction houses run frequent London sales, in the room and online, and an unconditional sale is a binding contract on the day. Miss the completion date and you risk losing the deposit and facing the seller's costs. The practical consequence is that finance should be shaped before you bid, not after. That means having the legal pack reviewed, understanding the lot's tenure and any service-charge or building-safety issues, and getting an indication from a lender that the asset and your exit fit their criteria. London lot sizes tend to run larger than the regional average, which widens the field to lenders with bigger minimum loans, but leasehold complexity, cladding and ex-local-authority stock all shape which lenders will look at a given lot.
How CoreFi works and what we are
CoreFi is a trading name of JG Core Ltd. We are a commercial finance broker, not a lender. Broking unregulated commercial finance to limited companies does not require FCA authorisation, and we do not hold ourselves out as FCA authorised or regulated. Our role is to understand the lot you are bidding on, package the case clearly and introduce it to lenders on our whole-of-market panel whose criteria fit. You deal directly with the lender on the loan itself. We cannot promise an approval or a specific rate. What we can do is point your case at lenders who actually complete on London auction timescales, and help you present an exit a lender can underwrite.
What lenders look at on an auction case
Lenders assess the security first: the property type, its tenure, the location and the loan-to-value. Some lend against the purchase price, others will consider the open-market value where you have bought well, which changes the cash you need on the day. They then weigh the exit, a refinance or an onward sale, and the profile of the buying company and its directors. On London stock the recurring questions are lease length, service charges, building-safety status on flats, and the mortgageability of the exit: if your plan is to refinance a short-lease flat after extending the lease, the lender wants to see that the extension is realistic within the loan term. All figures at this stage are indicative; formal terms come from the lender after assessment.
Frequently asked questions
How quickly can auction finance complete in London?
Auction contracts commonly require completion in 28 days and sometimes less. Bridging lenders work to those windows routinely, but the actual speed depends on the lender, the valuation and the legal work. The reliable way to hit a deadline is to start before you bid, with the legal pack reviewed and the exit clear.
Can I arrange finance before the auction?
Yes, and you should. We can put the case in front of lenders before the sale so you bid knowing the asset and exit broadly fit their criteria. Nothing is guaranteed until a lender formally offers after valuation and legals, but pre-auction groundwork removes most of the deadline risk.
Will lenders fund a short-lease or ex-council flat?
Some will and some will not, which is exactly why matching matters. Short leases, ex-local-authority blocks and flats with unresolved building-safety issues each narrow the lender pool. We place the case with lenders who have appetite for that specific stock rather than testing it against lenders who decline it as policy.
Do lenders lend against the purchase price or the value?
It varies. Many lend against the lower of price and value; some will consider open-market value where you have bought below it, which can reduce the cash you need to complete. Which basis applies is the lender's decision on the specific case, and any loan-to-value discussed up front is indicative.
Can CoreFi guarantee I will be approved?
No. We are a broker and we do not lend or decide outcomes. Whether finance is offered, and on what terms, depends on the property, your exit and each lender's appetite at the time. We help present the case well, but the decision sits with the lender.
Is CoreFi FCA authorised?
CoreFi arranges commercial finance for businesses, principally limited companies. Broking unregulated commercial finance to limited companies does not require FCA authorisation, and we do not hold ourselves out as FCA authorised or regulated.
Get matched with lenders for your London business
Tell us what your business needs and we will match you with lenders whose criteria fit. No obligation, no cost to start the conversation, and a straight answer about what is realistic for your situation.
Get matched with lenders