BRIDGING FINANCE
WHAT IS BRIDGING FINANCE?
BRIDGING LOANS - KEY QUESTIONS
Is a bridging loan secured finance?
Whats the general term of a bridging loan?
Lowest amount you can borrow?
What can I use the money for?
What is Open/Closed Bridging finance?
How fast can I get a bridging loan?
Are terms negotiable?
What can a bridging loan be used for?
HOW DOES BRIDGING FINANCE WORK?
Bridging loans work as a means of financing or as they are called ‘bridging’ money from a lender.
For example you may want to purchase a property which has vast potential, but requires works to be done to increase its value.
You need the procurement of funds to be quick and flexible to allow you to purchase the property fast, do the works to add the value and the property to be either sold or refinanced at the higher value.
Bridging loans are secured (as is a mortgage) on an asset or multiple assets depending on the structure of the deal being presented.
In many cases you do not pay interest and service the loan. The interest will either be “rolled up” and payable upon completion of your project by refinancing to a longer term loan or “retained” from the advance. This will depend on the scenario and lender terms.
THINGS TO NOTE
High Risk
Exit Route
Fees
Cashflow
REGULATED & UNREGULATED BRIDGING LOANS
What is Regulated Bridging Finance?
What is Un-Regulated Bridging Finance?
LONDON BRIDGING FINANCE BROKER
London is arguably one of the most competitive property markets in the world. We have been raising property finance in the London residential and investment markets since 2003. We understand the landscape of our property market and work with auctioneers, business owners, real estate agents, developers and property investors as a go to partner for all London bridging finance.
Although there are no geographical restrictions when it comes to obtaining funding through bridging, lenders always find London investments are a secure risk if being purchased at the right price. We work with you to provide strong comparables and solid exit strategies for projects in London and the Home Counties.
Our aim is to add value to your project and speaking to us early on in the journey always helps, as we provide you with insight into baseline figures, advice and help you secure the right bridging finance.
LARGE BRIDGING LOANS - £1M +
The higher the loan size the more structured and solid your proposition needs to be.
It is our job as your broker, to work with your to look at:
- comparables
- exit routes
- loan to value
- equity
- seeing the finer details of the property and project
- giving you an independent opinion of the deal
We then manage the loan process to provide you with flexible and competitive terms.
We are happy to work with your accountants, estate agents, surveyors and solicitors to ensure all aspects are covered.
BRIDGING FINANCE FOR AUCTION PURCHASES
The modern method of auction purchase is becoming increasingly popular. Buying at auction means you may find a good deal but will need to exchange at 10% on the day with a completion within 28 days (normally).
Bridging finance works very well with auction purchases as you will need access to capital quickly. We always suggest speaking to us very early and well before the auction date so we can get things planned, ready and in place.
This means when you go to the auction room, you are ready to bid with the confidence your finance is in place.
We are here to help with the whole process. We will raise the financing required but also here to discuss your ideas, provide invaluable advice and help with your overall strategy.
WHO PROVIDES BRIDGING FINANCE?
In today’s market there is a vast array of lenders offering short term bridging finance. Your traditional lenders, such as high street banks are not known for this type of lending.
The market has a mix from smaller building societies, specialist lenders, privately backed lenders and private cash rich investors offering you a financing solution.
They can help with residential property, commercial properties, auction property, property development, mixed use properties, refinancing an existing bridge, heavy and light refurbishment loans and people looking for additional capital quickly.
They do look at credit scoring, income, stability, loan amount, equity, your finance requirements and how quick you need them to release funds.
You will find a bridging lender can work to a tight deadline, act quickly and be flexible when you require bridging finance.
WHO CAN BENEFIT FROM BRIDGING FINANCE?
- Property investors and developers looking for short term finance
- Auction finance
- Developers needing development finance
- Commercial bridging finance
- Regulated residential bridging finance
- Business owners requiring short term finance for their business/ HMRC tax bill
- Anyone looking short term property finance
- Development Exit Finance
BOOK A CALL WITH A SPECIALIST BRIDGING BROKER
Speaking to one of our brokers couldn’t be easier.
We always advise speaking to us well in advance, giving us both an advantage to plan and ensure your finance application is correctly processed.
It also allows us to plan and help you organise your finances (if need be).
If you would like an informal chat, please use the contact form on our site, drop us an email: enquiries@london-fs.com or give us a call +44(0)208427 5057.
We can run you through what paperwork will be required, discuss any questions you may have about obtaining bridging finance or you may just want a professional, independent opinion on the property you are buying. In any instance we are here to help.
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