Insights

Bridge Finance Loans for Multiple Auction Lots: One Facility Across Several Wins

Bridge Finance Loans for Multiple Auction Lots: One Facility Across Several WinsPhoto by Otakar Hyps on Unsplash

You have five lots circled in one catalogue. You might win two of them, or four. A high-street lender will rarely size a loan against titles you do not yet own, and the 28-day clock starts when the hammer falls.

That is what repeat auction buyers want from bridge finance loans: one facility, written against the lots you intend to bid, drawn only against those you actually complete. Rikvin considers this case by case, subject to terms.

Your solicitor sees the same squeeze: packs arrive as a bundle, and completion dates rarely coincide. You need per-lot figures in writing before you bid, not a scramble after the sale.

Sizing one facility across several lots

Most auction bridging loans assume you have already won a single lot. Repeat buyers do not work like that.

Where a per-lot facility is agreed, we underwrite the catalogue you intend to bid: each lot is valued, the legal pack is read, and an indicative advance is assigned. Facility headroom is the sum of those advances, subject to an overall cap, and you draw only what you win.

You still need cash for the deposit on every lot you might succeed on. A bridging loan funds completion, not what the auctioneer takes when the hammer falls. If deposit cover across the bid list is thin, this structure does not work.

Facilities run from £1M to £100M. This is not a product for a single low-value lot. It is for buyers aggregating several wins into one book.

Treat every pack as a live purchase before sale day. Title defects, short leases, sitting tenants and outstanding notices all change the advance. We will not lend against a lot whose pack we have not seen.

A Decision in Principle issued before the auction still depends on those packs. It is not a promise that every lot will complete.

Per-lot terms matter because a clean freehold and a short-lease investment will not support the same LTV. Short-lease auction lots are a common reason a bank declines; at Rikvin they are considered case by case, subject to terms, where the exit is real.

Auction houses typically require completion within 28 days of the sale. If you win lots in different catalogues, drawdowns can be staggered against each date, provided security work and KYC are already done. That is the same discipline set out in completing a UK auction purchase in 28 days.

If you bid through an SPV, finish KYC before the first completion, not after. Each completed lot is a separate purchase for Stamp Duty Land Tax. We do not give tax advice. Budget duty and costs from your own cash: the facility does not fund SDLT.

Victorian terraced houses on a British residential street
Completions on different streets rarely fall on the same day, so drawdowns have to stagger. · Photo by Gonzalo Facello on Unsplash

Cross-collateralisation and when to walk away

If three lots complete and two do not, the facility sits against the security you actually take. Cross-collateralisation lets stronger titles support a weaker one, up to 75% LTV overall. It also cuts the other way: a delayed exit on one lot can affect the whole book.

This is the right tool when packs are in hand, deposits are covered, and each lot has a credible exit: a refinance, or a sale. Related: how we funded a London investment property on a short tenor.

It is the wrong tool if you are bidding without packs, if you need the loan to fund deposits, or if the combined LTV after costs does not work. The main risk is winning more than you can complete, or finding a title problem after the hammer, with the deposit already at stake.

We are a direct private lender, not a bank. We lend against the asset and the exit, on a first charge over each lot that completes.

Interest on a bridging loan is typically rolled up over a 3–24 month tenor, so you are not servicing several lots from cashflow while you exit. Term sheets can be issued in 24 hours, with drawdown typically in about two weeks, so the file has to start before sale day.

If a catalogue is already out, see how the process runs. Mixed residential and commercial catalogues are underwritten lot by lot; UK bridging loan products differ by asset type.

Buyers who complete three lots from one catalogue tend to be the ones who underwrote all five before they bid.

Get Funding Approval Within 24 Hours

Speak with our specialists about your bridging requirements.

Contact Us

Frequently asked questions

Per-lot terms are considered case by case, subject to terms. Where they are agreed, we set indicative advances on each lot once the packs and valuations are in, then cap the facility at the combined figure. You draw only on lots that complete. Terms are indicative and subject to valuation and due diligence on each title.
Complete only what the facility and your cash can fund. Auction contracts are unconditional, so surplus lots are your problem, not the lender's. Size the bid list to the approved headroom before sale day. We will not increase the facility under auction pressure without a fresh underwrite.
Yes. Each lot can complete on its own 28-day clock, with funds drawn against that title. Valuation, KYC and legal work should be finished before the first completion so later lots do not restart the file. Terms remain subject to due diligence on each title.
We underwrite lot by lot, then combine. Mixed catalogues are possible if each title is acceptable security and each exit is credible. We lend mainly to high-net-worth individuals, family offices and corporate borrowers, against the asset and the exit. A bank-style income test is not the gate.
Article sources1

Rikvin Capital cites primary, authoritative sources to support the information in our articles. The references below link directly to the original material.

  1. GOV.UK. Stamp Duty Land Tax

← Back to Insights