This makes sense, I deal in bridging weekly, but don't always see the short lease flats being bought often. If this is your strategy, there are pitfalls when doing short leases though.
The leasehold needs to be renewed and the purchase completed SIMULTANEOUSLY.
There needs to be longer than 95 years left on for the lender to be comfortable to take you out of the bridging loan.
Auction properties usually only return 15-20% of your money after a refurb.
You'll pay the following fees:
Auction fees
Solicitors fees 2 X ( bridging lender fees, your solicitors fees)
Valuation fees
Application fees to apply for the bridge
Stamp duty
Quantity surveyor fees.
All of these have to be factored in to your profit margins.
I hope this helps.....
👊🏾
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