What is a Bridging Loan?
A Bridging loan is best described as short-term finance that can last from 1-36 months.
Development Money has a whole of market approach with 315 lenders specialising in Bridging & Development Finance for fast and flexible funding. Bridging Loans are quicker to arrange and generally will take 1-4 weeks from start to finish to complete transactions. Our arranged loans can be for many purposes with the lender taking a 1st or 2nd Legal Charge over Property or Land.
Why use a Bridging loan?
There are many purposes that we arrange Bridging Loans for:
- Purchase of a Residential Property, Semi-Commercial/Commercial property or Land without Planning, Outline Planning or Full Planning. We also complete our Bridging Loans on unmortgageable properties of Non-Standard Construction or a Property that is unhabitable without a kitchen or bathroom that standard mortgage companies are not comfortable lending to. We also refinance all of these Security Titles to Capital Raise to purchase other properties or Repay Directors Loans.
- Our Bridging Loans can also provide 100% of Light, Medium and Heavy Refurbishments, subject to lenders criteria.
- Landlords like to Capital Raise on their Portfolios. The facilities that we can arrange would be a Revolving Credit Facility. The Facility available can be drawn as and when required that puts landlords in a strong position for purchasing other properties quickly using their Facility and presenting themselves as Cash Buyers.
- We have arranged Bridging Loans for clients that have Preferred Creditors, such as an HMRC; for Corporation Tax, PAYE, CGT, Income Tax or Inheritance Tax or have a VAT payment due. We have been able to advance available monies from a Property that they’ve intended to sell with our Loans dealing with the urgency of the Creditor before a Property Sale would generally take place.
- In times where Businesses are suffering Cash Flow issues, we can advance available monies from a Property that the Borrower intends to sell. Our Loans deal with the urgency of Cashflow for Businesses before a Property Sale would generally take place.
- We can Re-bridge existing Bridging loans where the Borrower hadn’t met their intended exit.
- Auction Purchases are a speciality where we complete on strict Auction deadlines between 14-56 days.
- We complete of Properties that our Borrowers intend to change into an HMO and can assist with the Refurbishment Funds.
- When a Property Developer is coming to the end of their Development the risk is minimal for a Bridging Lender to step in using a Bridging Product known as a ‘Development Exit’. This product allows the Borrower extra time to sell and capital raise funds to go into another project. We can generally get involved at the ‘Wind and Watertight’ or when it has achieved Practical Completion, Building Control Sign off and its Warranties.
What we offer
We lend from £25,001 – £50,000,000 to the following entities:
- Ltd companies/Businesses
Where a Bridging loan is different from the High Street?
The High Street can take many months requesting lengthy lists of requirements before going to their credit committee for a decision, subject to the property getting valued. It also perceives Property Development far riskier than our specialist lenders.
A Bridging Loan is much faster than the high street lender.
Little or No Funds available? Ask us more details about using your ‘discount as your deposit’ or ‘deferred consideration?
How to Pay your Interest on your Bridging loan?
- Serviced Monthly
- Retained Interest
- Rolled Interest
How to EXIT your loan?
Many of our Borrowers repay their Bridging loans in many ways:
- Sale of the target property we have just arranged your Bridging Loan on
- Sale of other assets to repay the charge from the property we have just arranged your Bridging Loan on
- We have a Commercial Department that can arrange a Buy to Let Mortgage as an alternative Exit Route.
- Other Monies in from various sources, i.e. insurance, inheritance, business profits etc
Do you want to get started? Contact us today on 01508 491111