What are the key features of bridging loans for land?
When it comes to arranging a loan for property development or such a large investment, you really need to know and understand exactly what it is you’re signing up for, and whilst a bridging loan may vary depending on its use and what you’re looking to do with it, bridging finance, by and large, has some prominent features and benefits that most clients look to use them for.
Again, in property and property development, and especially when it comes to land, we find that our clients require flexibility. In time, in terms and also in how they draw down the cash. These types of loan offer that flexibility
In today’s market, one of its key features is that things move quickly, and so when you spot an opportunity to move then you need to know that you can access the capital you need in order to make the most of that opportunity. More often than not we can get clients an agreement in principle the same day.
Our panel of lenders have years of experience in these industries and so they know exactly what you need and what is required to be successful in this industry and they put emphasis on you as a developer rather than arbitrary credit scores.
What are typical bridging loan rates?
The rates that you’re likely to pay for bridging finance will depend on a number of variables, and so we’re only able to give you typical rates without speaking about your situation first.
That being said, much will be down to the Loan To Value (LTV) of the bridging loan. To find out in more detail what we can offer you call us on 0203 889 4403.
How much can I borrow?
Again, this is something that’s likely to depend on your circumstances, but typically our clients are able to take a bridging loan or bridging finance for anywhere between £250,000 and £25,000,000.
Can I get a bridging loan on land without planning permission?
Only in exceptional circumstances. As a general rule of thumb, the vast majority of lenders won’t consider lending against land that doesn’t at least have some type of planning permission. If you’re not even at the stage of applying for planning permission, then it’s something you need to discuss with a broker as the likelihood is that our panel of lenders would consider this far too risky.
Other financial products we can arrange finance for
Whilst bridging finance is certainly one of our most popular products, it may be the case that it’s not actually the right product for you and your circumstances. We’ll always ensure that we recommend the right product for you, and due to the fact we have years of experience in the industry, if we don’t feel that it’s right, we’ll recommend something else.
Second charge bridging loans
If you’ve got a primary residence or property that already has a mortgage, then you may be able to raise finance against it on a second charge bridging loan. Essentially this means that if you’re unable to repay your loan then the lender gets second priority on the asset. If it’s a house, for example, they may apply to recover the loan amount from your property.
This is a fairly specialist type of loan, but one that we have many lenders willing to accommodate you for.
Commercial bridging loans
If it’s commercial property you’re looking at funding, then we also have lenders willing to provide bridging finance for commercial property. Following the pandemic commercial property has become increasingly popular either as a change of use investment or to convert into residential property. If this is an investment you’re considering, then we can certainly look to arrange this.
Fast bridging loans
Regardless of your situation, we can help you with access to rapid bridging finance or a fast bridging loan. Because of our experience we’re able, in many circumstances, to arrange a bridging loan or bridging finance in a matter of days. We understand that for many of clients time is of the essence and it’s something we’re always able to help with.
As well as land, many property investors are now getting much more involved in property auctions, however, in most cases this requires a deposit to paid quickly and paperwork to be exchanged within a matter of days. In most cases mortgage companies simply aren’t able to move this quickly and so this is where we find ourselves helping out clients in the majority of circumstances to help them with short term capital gaps that emerge when buying at auction.
Speak to our brokers today regarding bridging finance for land
We’ve got an experienced and friendly team waiting and willing to answer your questions and run you through the process if this is something you’ve been considering.
Reach out to us today and we can get you in touch with one of our experienced brokers who can give you all the information you need.