Buying for less than a property is worth? Enter the price and the value to see what a below market value lender could advance against a standard bridging lender, the deposit each way, and the total cash you need on day one with LBTT and ADS included. Free, instant, no email address required.
At this discount a BMV lender advances no more than a standard lender. BMV terms start to help once the discount is larger.
We arrange property finance from £75,000, so this one is below our minimum.
The price is above the value you entered. Lenders will work from the lower figure.
Illustrative only, based on the figures you enter. Lender ceilings, pricing and appetite vary by property, postcode and borrower, and the valuation is the lender's, not yours. LBTT reliefs are not modelled. This is not an offer of finance.
Get the real number: one working dayBidding on this at auction? Get bid-ready before the sale.
The number that matters is cash needed on day one. A below market value lender does not make the deal cheaper. It usually costs a little more in interest and fees, because the loan is bigger. What it changes is how much of your own money has to go in at the start, and that is what decides how many deals you can do at once.
Two ceilings set the loan and the lower one wins: a share of the price you are paying and a share of what the property is worth. A small discount means the value ceiling bites. A large one means the price ceiling does. The valuation is the lender's valuer's figure, supported by comparable sales, not an agent's guide or a home report from last year.
LBTT and ADS are worked out on the price you pay, not the value, and lenders will not fund them. They are in the cash figure above. For the full picture of how these loans work and what counts as a real discount, read below market value bridging loans in Scotland. To cost a standard bridge, use the bridging loan calculator, and for the tax on its own the LBTT and ADS calculator.
The lender takes the lower of two figures: a share of the purchase price, typically 90%, and a share of the open market value, typically 70% to 75%. A standard bridging lender takes a share of the lower of price and value, so the discount does nothing for you.
With a strong enough discount, around 10% of the purchase price, against 25% or more by the standard route. You still need cash for LBTT, ADS on residential investment purchases, the arrangement fee and legal and valuation costs, none of which a lender will fund.
A small number of lenders will fund the full price on qualifying deals where the loan still sits within 70% to 75% of value, which means a discount of 25% to 30% or more. It is the exception, the costs still come from your own cash, and not all of those lenders complete in Scotland.
The lender's. An independent valuer instructed for the lender decides the open market value, and on commercial property the figure used is often the 180-day value, which is lower. Run the calculator on a cautious value before you bid.
No. It shows how the arithmetic works on typical market terms. Send us the price, the value and the plan and within one working day we will tell you whether the discount is fundable and on what terms.
Bought well, or about to? Send the price, the value and the plan. One working day to an honest view on whether the discount is fundable.