Bridging Loans

Most bridging loans are actually used when a property cannot be mortgaged with a long-term loan (for example a buy to let mortgage), due to the current state of the property.

Bridging finance is increasingly used these days for refurbishments of property, for example a fire damaged residential property bought at auction that needs a small amount of money spent on it to increase its value and following which it can be re-sold or refinanced at a higher value.

As a general rule, light refurbishment bridging loans will be at a better rate than heavy refurbishment bridging loans and will achieve a higher Loan to Value (LTV).

Both residential refurbishment bridging loans and commercial refurbishment bridging loans are available.  Residential refurbishment bridging loans are generally less expensive than commercial refurbishment bridging loans.

Following a development or refurbishment, when the property is complete many lenders also allow the client to take out a further draw of funds on the increased value of the property to release some of the money put in to do the refurbishment works. This is generally done when the property is being marketed for sale.

We have access to providers of bridging finance lending money at less than 5% per annum on prime projects. However, we can also provide:

• Refurbishment Finance to flip or retain property.
• Land Bridging for pre-planning purchases.
• Finance for Opportunities and for Unexpected Crisis.
• Small value loans on properties not considered by the buy to let market.
• Standalone 2nd, 3rd, Third Party and Equitable Charges.
• Loans at up to 87% of the purchase price Day 1 for refurbishments.
• Planning Gain loans at up to 90% of the hope value of the land.
• Bridging Loans on Land without Planning Permission / Complex Title Transactions
  

We are also accredited by The London Institute of Banking and Finance as a Certified Practitioner in Specialist Property Finance.