A Bridging loan is best described as short-term finance that can last from 1-36 months.
Just Bridge It has a whole of market approach with 160 lenders for fast and flexible funding within the week and for all kinds of purposes on a 1st or 2nd Legal Charge over a security property or land.
Why use a Bridging loan?
Historically Bridging finance was used to ‘bridge’ the gap in property chains, however it is now widely for the following purposes:
- Complete initial purchases of residential or Semi-Commercial/Commercial property
- Complete on unmortgageable properties of non-standard construction or a property that is unhabitable without a kitchen or bathroom that mortgage companies are not comfortable in lending to
- Complete the purchase of land with or without planning permission
- Create ‘war chests’ by way of capital raising against an existing property or a Portfolio. Many of these scenarios are used whereby the Borrower is in a cash rich position to buy other properties quickly or simply funds are raised for business purposes whether it is for cash flow purposes or to pay Tax or VAT. We have been asked to raise funds for Corporation Tax, PAYE, Capital Gains Tax, Inheritance Tax or Income Tax purposes
- Re-bridge existing Bridging loans due to expire
- Auction purchases on strict completion timelines
- Create funds for refurbishment projects, light, medium or heavy or simply for an extension or HMO under PDR or with planning permission
- Using a 1-18 month term with a ‘development exit’ product to step off your Development Finance product and onto a cheaper product when the property or site is wind and watertight or has achieved Practical Completion
We lend from £10,000 – £50,000,000 to the following entities:
- Ltd companies/Businesses
- Investors/Property Developers
Where a Bridging loan is different from the High Street?
Many 1st tiered lenders on the high street can take many months requesting lengthy lists of requirements before going to their credit committee for a decision, subject to the property getting valued.
A Bridging loan is much faster than the high street lender and not only do we lend against the Bricks and Mortar value, we also have lenders that will lend against the open market value where the high street is restricted. Ask us about using your discount as your deposit?
How to Pay your Interest on your Bridging loan?
Whilst you only pay interest on the money that has been released to you, you may be able to make monthly payments and service the loan however where allowable there may be the opportunity of rolling up or retaining your interest for the term of the loan on Day 1. Many of our clients prefer this option.
How to EXIT your loan?
Many of our Borrowers repay their Bridging loans in one of the following ways:
- Sale of the property we have just arranged your Bridging Loan on
- Sale of other assets to release the charge from the property we have just arranged your Bridging loan on
- Arrange a Buy to Let Mortgage to close down the Bridging Finance
- Monies in from other sources, i.e. insurance, inheritance, business profits etc
Do you want to get started? Contact us today on 01508 491111
“I just wanted to drop you a line and say it's been a pleasure working with Lesia Chomiak. There was a delay on the vendors side but I must say the transaction was very simple and not overly complicated like other lenders! She is a credit to your team”
Mark Ellis … excellent staff member who talked me through my options. A credit to the Company.
Had numerous dealings with Esther and her team. They have helped with Commercial refinancing and Bridging loans for our developments. Great communication, great service and great people!
Sampson Homes Ltd
For the past 4 months I have been tirelessly working to refinance onto a Development finance package. Don't let anyone let you think it's easy! I have been more than lucky to have a great team of brokers, solicitors and friends and family behind me. So pleased today to hear it's all gone through as planned. Now the real work can begin. Thanks to Karl Mitchell, Esther Bennett at Development Money. (Testimonial taken from Development Money Bridging Finance, Development Finance and Commercial Finance Facebook page)
“Just a mention and a massive thank you to Esther Bennett and her team today for the very inspiring meeting we had today. I cannot speak highly enough of her attention towards her clients in working out the best ways forward to allow financing of property purchases using creative finance. Thank you Esther, looking forward to working with you for the long term. Anyone else looking at Bridging and Development finance..... don't look any further!”
“In one of my most stressed/testing times, Karl has been an absolute star. Could not be more helpful, and I have to say stands out head and shoulders above the other 3 brokers I have been dealing with.”
“When the possible seems impossible, one phone call to Esther Bennett and her amazing team is all you need to do! Well done to the brilliant Development Money team!”
Mark Ellis … Many thanks for your time on the phone yesterday and I appreciated your honesty. I will definitely be in touch again when I have another project to fund.