Bridging Finance

There are many situations where bridging finance is the best possible option for your property objective.

Aside from being a fast and flexible type of finance, bridging finance can help unlock the value in certain type of property or situations where speed and / or flexibility is essential.

Examples where bridging finance is often the most suitable form of finance include but are not limited to:

Auction purchases.
With 28 days to purchase from when the hammer goes down, speed is of the essence.

Short leases.
Most conventional term lenders do not accept short leases under 80 years. A bridge means you can buy it, extend the lease, then refinance at the uplifted value.

Development exit/sales exit.
You need more time to sell the units you’ve built, or you want to capital raise whilst they sell. Bridging could help achieve this.

Unmortgageable properties.
Conventional term lenders will not lend on property if they are not habitable. Bridging would allow you to bring them up to a habitable state and remortgage at the improved value.

Conversions (HMO for instance)/Light, Medium, Heavy refurb.
When you’re changing the layout or use of a property, conventional term lenders will not allow this. Bridging allows you to not only do this, but you’d also be able to refinance to a conventional term lender at the higher value.

Land without planning.
Term lenders do not lend on land. However there is often opportunity to get planning on certain land, and bridging finance is a great way to secure it whilst you obtain planning.

Semi-commercial and commercial where no tenants or unmortgageable.
Commercial term lenders won’t lend on empty commercial in most circumstances. Empty commercial is also a much lower value. Using bridging allows you to secure the property, find a tenant, and then remortgage at a higher value.

Bought but not sold – own home (Regulated).
You’ve found your dream home but not sold your own home. Bridging could be the answer. Contact our regulated sister company Helix Financial Partners Limited for more information. www.helixfp.co.uk/contact/