Auction Bridging Loan: Semi-Commercial Purchase, Exeter
A repeat borrower — purchasing through a limited company SPV — acquired a semi-commercial freehold in Exeter at auction for £78,000. Aura Capital structured a £54,600 gross facility with a day one net advance of £46,111.70 and a separate £30,000 works drawdown released in arrears against photographs, video walkthrough, and invoices. Completed in 15 working days using a desktop valuation and dual representation legals — well within the 28-day auction window.
The Situation
A property investment company — a repeat Aura Capital client operating through a limited company SPV — had successfully bid on a semi-commercial freehold at auction in Exeter, acquiring the asset for £78,000. The property required refurbishment works of £30,000, after which the borrower intended to refinance onto a longer-term facility to hold the asset as an investment.
Semi-commercial properties — combining residential and commercial elements within a single freehold — sit outside standard residential lending criteria, and the lender pool within the bridging market is narrower than for purely residential assets. The auction timeline introduced the additional constraint of a 28-day completion window.
How the Facility Was Structured
The gross facility was £54,600. The day one net advance — after deduction of retained interest, arrangement fee, legal fee, and administration fee — was £46,111.70, which funded the auction purchase alongside the borrower's equity contribution. A separate £30,000 works drawdown was structured as a second tranche, retained by the lender and released in arrears on completion of the refurbishment works. The total facility was structured at 0.95% per calendar month over a 9-month term, with interest fully retained — no monthly payments were required during the works and refinance period.
No building surveyor required. No upfront valuation cost. The facility was assessed using a desktop valuation — a cost-free, same-day assessment drawing on comparable evidence and market data. The works drawdown was released against photographs, a video walkthrough, and contractor invoices rather than a formal monitoring surveyor report.
A traditional monitoring surveyor adds significant costs to smaller loans and introduces further complexity and time to the drawdown process, delaying the release of funds the contractor needs to continue works. Releasing the drawdown against photographic evidence, a walkthrough video, and invoices keeps the programme moving without the friction.
The Drawdown Structure
Released at completion — gross £54,600 less retained interest, arrangement fee, legal fee, and administration fee
Retained by lender — released in arrears on completion of works, evidenced by photographs, video walkthrough, and contractor invoices
Desktop Valuation and Dual Representation
The desktop valuation was the first enabler of the 15-day timeline. A physical RICS inspection on a semi-commercial property — which requires a surveyor with mixed-use experience and involves a more detailed inspection process than a standard residential report — can take one to two weeks to arrange and produce. Removing that step entirely freed the timeline for the legal process to run from day one without waiting for a valuation report to land.
Dual representation — where a single solicitor acts for both lender and borrower rather than each party instructing their own legal team — was the second. The coordination overhead of managing two separate law firms, each with their own queries, timelines, and communication styles, is one of the most consistent sources of delay in bridging transactions. Dual representation consolidates that process under a single team and a single timeline. A single solicitor acted for both parties, and the legal process was managed as a single workstream throughout.
Together, desktop valuation and dual representation delivered a 15-working-day completion — well within the 28-day auction requirement.
The Numbers
| Asset | Semi-commercial freehold |
| Location | Exeter, Devon |
| Purchase price | £78,000 (auction) |
| Borrower | Limited company (SPV) |
| Gross loan | £54,600 |
| Day one net advance | £46,111.70 (gross £54,600 less fees and retained interest) |
| Works drawdown | £30,000 — retained, released in arrears against photographs, video walkthrough, and invoices |
| Rate | 0.95% per calendar month |
| Term | 9 months |
| Interest | Fully retained — £4,668.30 |
| Exit fee | 0.95% |
| Arrangement fee | £1,365.00 |
| Legal fee | £1,680.00 |
| Charge | First charge |
| Valuation | Desktop — zero valuation cost |
| Legals | Dual representation — single solicitor acting for both parties |
| Time to completion | 15 working days |
| Borrower profile | Repeat borrower — company (SPV) |
| Exit strategy | Refinance onto longer-term facility following completion of works |
| Product | Bridging Finance (Unregulated) |
Why This Case Worked
Three factors combined to deliver a clean, fast outcome on a transaction that many lenders would not have taken on at all.
The repeat borrower relationship was the starting point. With an established track record across previous transactions, Aura Capital could move immediately to lender identification and structuring. For auction transactions with a fixed deadline, that standing start is a material advantage.
The desktop valuation and photograph-based drawdown release removed the two most common procedural delays in a refurbishment bridging transaction — the pre-completion survey and the post-works monitoring visit. Both were replaced with faster, equally reliable alternatives: desktop comparable analysis and photographic evidence reviewed directly by the lender. The borrower saved both time and cost.
Dual representation compressed the legal timeline by eliminating the coordination layer between two independent law firms. A single legal team, a single set of queries, a single timeline — and a completion at 15 working days on a semi-commercial auction purchase with a staged drawdown structure.
Products Used in This Case
This transaction was delivered using Aura Capital's auction bridging finance capability, structured with a desktop valuation and a staged works drawdown for a semi-commercial freehold purchase. If you are purchasing a mixed-use or semi-commercial asset at auction and need to complete quickly, speak to Aura Capital directly.
Related products that may also be relevant include our no valuation bridging loans for cases where a full desktop assessment can be waived, and our broader commercial bridging loans range for purely commercial assets.
Purchasing a Semi-Commercial Property at Auction?
Whether it is your first auction purchase or your tenth, Aura Capital structures bridging finance around the asset, the timeline, and the borrower — not around a rigid product set. Speak to us directly and we will tell you clearly what is achievable and how quickly.
Get a Quote