Bridging Finance and Bridging Loans

The uses of Bridging Finance are wide ranging. Some examples are:

Fast purchase of a property. This could be from an Auction, for example. When a sale is agreed at an auction the purchaser usually has 28 days or less to complete. Bridging Finance is perfect for this.

The purchase of an uninhabitable or “un-mortgageable” property. A property is not deemed to be mortgage-able if it is not habitable. Perhaps the property has suffered from fire or flood damage, or it has no working kitchen or bathroom.

Refurbishment, restoration or conversion or a property. A bridging loan is ideal for buying a property which needs works carrying out on it. Funds can often be provided to facilitate the works on the property, as well as the purchase.

Business Tax Payments. A bridging loan could be used to raise funds quickly against a property to pay a Tax bill, or any other urgent business-related bills.

Below Market Value purchases. Bridging Finance lenders will often advance a loan based on the value of the property, regardless of the purchase price. We have helped clients obtain 100% of the purchase price using a bridging loan.

Equity release. As long as the funds being released for business purposes, and not secured by a first charge on the borrowers’ main residence, equity can be released from properties owned quickly.

Lease Extensions.

Redeeming Development Finance facilities, to allow further time for sales.

Re-bridging, where a borrower needs another bridging loan, but the existing bridging lender will not extend the loan.

Loan to Values (LTVs) of up to 80%, and up to 100% with additional security.

Interest rates from 0.4% per month, dependent on the LTV required.

Loans sizes from £25,000 upwards, with no maximum!

No redemption fees or exit fees in many cases

Available throughout the United Kingdom, and some European countries.

Bad or Adverse credit Bridging Loans available

Loans from 1 month to 3 years

No upper age limit for borrowers

First, Second (and even Third!) charge loans available. Some lenders will lend relying on an Equitable Charge.

Property types include Residential investment property, Buy to Lets, Semi-Commercial/ Mixed-Use, Commercial Property, Land with planning, Property Portfolios, HMOs, Ex-Local Authority, Grade 2 Listed, and rural properties.

Bridging Loans can be arranged for UK citizens, expatriates, Foreign Nationals, UK companies and Trusts, Offshore Companies and Trusts, SPVs, Funds, Executors, LLPs, sole traders, partnerships etc.

The borrower will be responsible for legal fees and valuations where applicable.

Who will be borrowing the money? A limited company, individual or other? We need the full name, last 3 years address history and Date of Birth for each borrower. If the applicant is a Company, we would need the company name and number along with all the Directors details, and the details of the significant shareholders (i.e. those owning more than 20% of the shares).

Full Address of the property to be purchased including postcode.

Sales Particulars or valuation if you have one (do not instruct your own valuation!)

Planning permission details, if applicable.

Explanation of your plans/ intentions for the property.

How will the Bridging Finance loan be repaid? (usually via a sale or refinance).

A bridging loan can actually be completed in 48 hours. At Positive Commercial Finance, we can provide you with an offer in a matter of hours. Subject to all the professionals (valuers and solicitors) carrying out their roles in a timely manner, loans can be completed very quickly thereafter.

Anyone can find themselves in need of a bridging loan. Applicants can be Companies and Individuals, including property developers, landlords, property investors and entrepreneurs.

The main uses for bridging include:

To raise monies quickly, perhaps for a corporate tax bill
To complete on a purchase quickly
To renovate or refurbish a property
Auction purchases
Purchasing a property which is un-mortgageable (no working kitchen or bathroom, or roof!)

Bridging Finance has got cheaper recently with rates from around 0.49% per month.
Interest rates can be determined by Loan to Value, the property type, and the borrowers credit history and profile or level of experience.

Arrangement Fees – A fee charged by the lender for providing the loan
Exit Fee – this may be charged when the loan is repaid
Surveyors or Valuer Fees – a RICs valuation is usually required
Legal Fees – Solicitors fees for dealing with the loan
Interest – usually calculated on a monthly basis.

This is where Positive Commercial Finance come in. We will save you time and money by using our experience to get the best fit for your proposal and get you the maximum LTV Bridging Finance.

We will need the borrowers name (or company name and number) and address, security property address, source of deposit, length of term required and the “exit strategy” or the method of repaying the loan. We will also need to know if the borrower(s) have any experience of doing what they are proposing to do, and if there is any adverse credit history.