Short term property finance often referred to as bridging is a useful tool in an ambitious developer’s armoury or indeed any other business requiring working capital. It is a short term loan usually for up to 12 months secured against property or land assets where speed is of the essence. We lend against market value and up to 90% of costs, more with additional security.
Typical Bridging Finance uses include:
- Opportunity to purchase at under market value from a motivated buyer in return for a quick completion before taking out a mortgage against the full market value.
- A revolving credit facility against existing security providing the ability to aggressively bid for off market properties effectively as a cash buyer
- Buying and developing run down properties which can’t be mortgaged or are subject to large retentions before refinancing with a buy to let mortgage
- Buying a vacant commercial unit cheaply then taking out a commercial mortgage upon securing a tenant.
- Buying dis-used commercial property such as pubs and offices or land prior to applying for enhanced planning or change of use.
- Re-financing property assets to free up working capital, pay off a tax bill or for any other legal purpose
Before taking out a bridging loan you should have a robust exit plan to pay off the loan at the end of the period.
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