BMV Finance

BMV Finance supports investors acquiring property below open market value, where lending may be assessed against OMV rather than only the purchase price.

Finanze Property clients pursuing below-market-value opportunities can access specialist lending support through Finanze Capital and other lenders where the valuation, discount rationale, legal structure and exit strategy are acceptable.

How OMV-based lending can help

In a standard bridge, lending is often restricted by purchase price. In a genuine BMV case, the open market value may be higher than the purchase price. If the lender can rely on that OMV, the effective net loan to purchase price may be higher than a standard lender would usually allow.

Example

If a property is purchased for £700,000 and supported by an OMV of £1,000,000, a 70% loan-to-OMV facility would equal £700,000. In that example, the gross facility could potentially equal 100% of the purchase price before costs, while remaining at 70% LTV against OMV.

Alastair Hoyne’s strategy approach

Alastair Hoyne, CEO and Founder of Finanze Group, has developed complex custom property strategies designed to unlock value where ordinary purchase-price-based lending does not reflect the full commercial opportunity.

Important information

This page is for information only and does not constitute financial, legal, tax or valuation advice. References to potential 100% net loan to purchase price are illustrative only and not a guarantee. Lending is subject to status, valuation, legal due diligence, credit approval and satisfactory security.