DEVELOPMENT AND BRIDGING FINANCE

These are essentially short-term loans that are often arranged within a short time-frame and may be made to an individual or a company and secured against residential, commercial property or development site

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    Bridging Finance

      Bridging finance is not always appropriate as a finance solution as it is generally considered more expensive than traditional mortgages. However it is a very useful tool in certain scenarios for example:

      • If a property is not mortgageable due to needing refurbishment works like a new kitchen/bathroom

      • If you buy a property at auction and need funds quickly to complete

      Generally bridging finance is available up to 75% loan to value and rates can be as low as 0.49% per month. Terms will generally range from 12 -24 months.

      An exit Strategy will always be required for bridging finance whether it be sale of an existing asset or a remortgage etc.

      Development Finance

        Property development finance is a short-term loan for residential property developments, such as construction projects, and is usually advanced as a loan towards land purchase and a loan in stage payments for development costs.

        Loans are available to service up to 50% of the purchase price of the land/development and 100% of the build costs. However the higher the borrowing available sometimes equates to higher rates and fees being charged. The funds are drawn down in payment tranches to fund different stages of the build/renovation, and these are determined by the Quantity Surveyor the lender appoints.

        Personal guarantees and/or Debentures are also sometimes a requirement of funding. Development lending is generally available for terms of 12 – 24 months.