Below Market Value Bridging: Buy Well, Bridge Smart

Below Market Value Bridging

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At MS Lending Group we pride ourselves on providing fast, flexible and reliable short term property finance. When you have negotiated a purchase below market value, the last thing you need is a lender who cannot move at the pace of the deal. We don’t work with tick boxes; we assess every case on its own merits, provide an agreement in principle in just a few hours, and give you direct access to the decision makers.

Our below market value bridge is built on a simple idea: buy well, bridge smart. If you have secured a property for less than it is worth, we lend against the deal you have done, releasing up to 90% of the purchase price so that more of your own capital stays free for the next opportunity.

What is a Below Market Value Bridge?

A below market value bridge is a short term loan secured against a property bought for less than its open market value. Where a standard bridge is sized against value alone, BMV bridging finance recognises the discount you have negotiated and lends a far higher proportion of what you actually paid.

That difference matters. On a conventional bridge you may still need to put in a substantial deposit, even on a well bought property. With a BMV bridging loan the strength of the purchase does the work for you, reducing the cash required at completion and letting you move on to the next deal sooner.

How Our BMV Bridging Finance Works

Our below market value bridging loan works on two straightforward rules:

• We lend up to 90% of the purchase price of the property.
• The loan must not exceed 70% of the market value.

The second rule is what keeps the product sensible. It ensures there is always meaningful equity in the property, which is precisely why we are comfortable lending a higher percentage of the price you have paid.

Example

• Purchase price (PP): £500,000
• Market value (MV): £650,000
• We lend up to 90% of PP: £450,000

In this example the £450,000 advance sits within 70% of the £650,000 market value, so the deal works. You complete a £500,000 purchase with £50,000 of your own funds, rather than the far larger deposit a standard bridge would require. More value, more opportunities.

More Value, More Opportunities

Our below market value product was designed around how property investors actually buy. Four things set it apart:

• Higher Access to Funds: we lend up to 90% of the purchase price, well beyond what most short term lenders will consider.
• Designed for Investors: helping investors secure maximum value from new opportunities, with terms built around the way you buy.
• Greater Flexibility: funding shaped around your purchase, not forced into a fixed template.
• Built for Speed: when an opportunity arises, we move quickly, with terms issued within hours.

What a Below Market Value Bridging Loan Can Be Used For

High LTV bridging against a well bought property opens up a range of situations. Some of the most common include, but are not limited to, the following:

• Motivated and distressed sellers: where a vendor needs certainty and speed, and will trade price for both.
• Off market and portfolio acquisitions: buying direct from a vendor or adding to a portfolio at a negotiated discount.
• Probate and part exchange purchases: situations where a quick, clean completion is worth more to the seller than the last few thousand pounds.
• Refurbish and refinance: securing the asset now with a BMV bridge loan, then refinancing onto a longer term facility once works are complete.
• Capital retention: keeping your own funds available for the next purchase rather than tying them up in a deposit.

The common thread is straightforward: below market value property finance gives you access to funds fast, which is exactly what we do day in, day out.

Eligibility Criteria: Who Can Benefit from BMV Bridging

This product is built for property investors. Whether you buy as an individual, a sole trader, a limited company or an SPV, a below market value bridging loan is designed around the deal in front of us rather than a rigid template.

As with all of our lending, we look at the practical detail: the strength of the purchase, the evidence supporting the market value, and the credibility of your exit, whether that is a sale or a refinance onto a longer term facility.

What sets our approach apart is that we assess the specific case rather than applying blanket criteria such as perfect credit scores or lengthy financial histories. If the discount is genuine and the plan is sound, a BMV bridging loan could still be a viable option even where you do not fit the mould of traditional lending.

BMV Bridging Loan: Timeline of an Application

Applying for below market value bridging with MS Lending Group is designed to be straightforward and efficient. When you have negotiated a discount, time is usually the thing protecting it, so we keep the process moving. Here is an overview of the typical timeline:

Step 1: Get in touch

Contact our team with the basic details of the purchase, including the price agreed and your view on market value. Our team will explain the next steps, answer any initial questions and begin shaping a solution around your plans.

Step 2: Consultation and action plan

We will look at the specifics of your BMV bridging finance application, including how the discount has been achieved, the evidence supporting value, your proposed exit strategy and the documentation required. We are able to utilise AVMs on gross loans up to £150k, and Desktop Valuations on loans up to £750k.

Step 3: Decision and release of funds

Once your documentation has been submitted we review the application promptly. Upon approval you can expect a decision quickly, some in as little as 24 to 48 hours, with funds released so you can complete without delay.

Case Study: Below Market Value Purchase in London

Our client secured a three bedroom semi detached property directly from the vendor at a below market value price of £400,000. The property was already in good condition and required no refurbishment before resale, making it an attractive opportunity for an experienced, fast moving property professional.

An AVM confirmed a value of £520,000, supported by strong local comparables. We provided funding on the purchase price, giving the client the leverage needed to secure the property swiftly and line up their onward sale, with a 12 month term in place to complete the transaction on their terms.

Why Choose MS Lending Group for Below Market Value Bridging

So, why choose us?

At MS Lending Group we understand that a well negotiated purchase is a perishable opportunity. Our job is to fund it before it disappears, which is why we offer terms within hours, direct access to decision makers and a genuine case by case approach.

We have countless cases that demonstrate our expertise as a short term property finance provider, and we are confident you can invest with confidence alongside us at MS Lending Group.

frequently asked questions

How Much Can I Borrow With a Below Market Value Bridge?

We lend up to 90% of the purchase price, provided the loan does not exceed 70% of the market value. For example, on a property purchased for £500,000 with a market value of £650,000, we could lend up to £450,000. Contact our team and we will confirm what is achievable on your specific purchase.

Do You Lend Against the Purchase Price or the Market Value?

Both are used. The loan is sized on the purchase price, up to 90%, and then checked against the market value to make sure it does not exceed 70% of it. This is what allows us to lend a higher percentage of the price than a standard bridge, while keeping meaningful equity in the property.