When the discount is the deposit.
If you are buying a property for genuinely less than it is worth, the discount itself can do the job the deposit usually does. A bridging lender can lend against the property's open market value rather than the price you pay — so on the right deal, the facility covers up to 100% of the purchase. It is arranged whole of market, and every case turns on a genuine, valuer-confirmed discount.
How 100% works on a below-market-value deal
A bridging lender sizes the loan from the open market value the valuer puts on the property, not the price you negotiate. Buy well enough below that value and the advance against open market value can equal — or exceed — the price you are actually paying. The equity the lender needs is already in the deal, in the form of the discount, so it does not have to come from your pocket.
The whole structure rests on one thing: the valuer has to agree the open market value, and the discount has to be genuine. That is why the deals that work have a clear reason for the low price — an auction lot, a distressed or motivated seller, an off-market or probate sale, or an asset held back by a lease or a condition issue. A price the valuer simply confirms is the market value has no discount to lend against, and no amount of structuring changes that.
There is no fixed discount percentage that unlocks it. On some deals the facility covers the full purchase and the fees too; on others, valuation, legals and lender fees are payable by you. Which applies depends on the lender and the deal, and we tell you before you proceed.
The 90%-then-refinance route
Where the discount is smaller, or where you intend to hold the asset rather than sell, the cleaner structure is to fund up to around 90% of the acquisition cost on a bridge, add value or let the property, and then refinance onto a commercial mortgage priced on its commercial or investment valuation.
The mechanism is the same idea worked in two steps: the gap between the discounted purchase and the property's true market or income value becomes the equity that supports the term facility. Once the asset is stabilised and evidenced, the commercial lender is underwriting proven value and income rather than a purchase price. The extend, bridge or refinance decision covers how to time that exit.
What makes a deal fundable
A genuine discount the valuation supports. This is the whole deal. If the valuer does not confirm the value, the structure does not stand up, whatever the vendor says the property is worth.
A reason for the price. Auction, distress, off-market, probate, a short lease or a condition problem — something a lender recognises as a genuine driver of a below-market price.
A credible exit. A sale at market value, or a refinance onto a term facility once the asset is let or improved. High-leverage bridges are underwritten on the exit as much as the entry.
Get those three right and the leverage follows. Miss the first and no lender will price it, however good the headline discount looks on paper.
How we work on these
We arrange, we do not lend. HyLend is a whole-of-market credit broker; we place the deal with the lender whose appetite and valuation approach actually fit it, which on high-leverage below-market-value cases is a narrower field than standard bridging.
We are honest about the valuation early. The fastest way to waste everyone's time is to structure a 100% deal around a value the surveyor will not support. We pressure-test that at the outset, not after fees are spent.
Every figure is indicative. Loan size, whether fees can be added, and the final leverage all depend on the valuation, the lender and full underwriting. Nothing here is an offer of credit.
Below market value bridging FAQs
Can you really arrange 100% bridging finance?
On a genuine below-market-value purchase, yes. A bridging lender can lend against the property's open market value rather than the discounted price you are paying, so where the valuer confirms a large enough discount the facility can cover 100% of the purchase price. The equity comes from the discount rather than your cash, and it is arranged deal by deal subject to valuation and lender appetite, not guaranteed.
What counts as a genuine below-market-value deal?
A price genuinely below what the property is worth, for a reason a valuer will accept: auction purchases, distressed or motivated sellers, off-market and probate sales, or assets held back by a lease or condition issue. A price the valuer simply agrees is the market value has no discount to lend against. There is no fixed percentage; what matters is what the valuation supports.
Do I have to put any money in?
It varies by lender and deal. On the right transaction the facility covers the full purchase price, but valuation, legal costs and lender fees may be payable by you, and on some deals those can be added to the facility while on others they cannot. We tell you which applies before you proceed.
How is this different from the 90%-then-refinance route?
The 100% route funds the whole purchase day-one against open market value. The 90% route bridges most of the cost, then refinances onto a commercial mortgage on the commercial valuation once the asset is let or improved.
What is the difference between the 100% route and the 90%-then-refinance route?
The 100% route funds the whole purchase day-one by lending against open market value, and suits a clear resale or refinance exit. The 90%-then-refinance route funds up to around 90% of acquisition cost on a bridge, then refinances onto a commercial mortgage priced on the property's commercial or investment valuation once it is stabilised or let.
How do I exit the bridge?
Either by selling at market value, or by refinancing onto a longer-term facility such as a commercial mortgage once the asset is income-producing. A credible, evidenced exit is one of the things a lender needs to see before agreeing a high-leverage below-market-value bridge.
The valuation basis can erase the discount you bought
A below market value structure depends entirely on the valuer agreeing the open market value and on the lender being willing to lend against it. The second half of that sentence is where these deals are usually lost.
If the lender sizes the advance on a 90 or 180 day figure instead of market value, the gap between your price and the open market value narrows before you start — and a 90 day figure commonly sits 10% to 25% below market value. On a £400,000 open market valuation, a lender applying 70% to market value advances £280,000 while a lender applying 70% to a £330,000 90 day figure advances £231,000. The discount is the same; the deal is not.
That is why we establish the basis of value before instructing anything on these cases. 90 and 180 day valuations explained →
Timeline on a below market value deal
Two to four weeks, and slightly slower than a straightforward bridge. The reason is that the valuation carries more weight on these cases: the whole structure depends on the valuer supporting the open market value and on the lender being willing to size against it rather than against a restricted marketing period figure. That is not a case for a light touch valuation route.
Where the purchase is at auction, the 28 day clock applies as normal and the preparation has to happen before you bid. Check whether your deadline is realistic →