BRIDGING FINANCE
Black Book Finance can assist you and your clients with all types of Bridging Finance, wherever appropriate.
Uses for Bridging Finance?
For clients seeking a short-term loan secured against property or land, this type of finance can often be used to ‘bridge’ the gap until either longer-term finance can be arranged, or until the underlying asset/security is sold.
Bridging Finance (also known as ‘Short Term Finance’) can provide funds for most legal purposes. Bridging is often used to purchase a property while waiting for the sale of another to complete, or when buying a property at auction, or when buying a property to renovate, to let, to refurbish, to convert, to exit a development project (‘development exit’), or simply to sell on.
Landlords are increasingly utilising Bridging Finance to convert existing Buy to Let properties into HMOs, or to refurbish existing HMOs to meet the new HMO licensing requirements. Once the works are completed, longer term and more cost-effective finance solutions can then be secured, using the newly-increased valuation, yields and/or lowered LTV.
The two most important underwriting factors for Bridging Finance are firstly, the suitability of the asset (property) offered as security, and secondly, the assurance of the planned ‘exit’ (repayment of the loan).
Black Book Services
Black Book Finance offers a client-referral service, that caters for any type of Bridging requirement.
Speed is usually of the essence, so we move swiftly to secure suitable indicative terms.
On receipt of client instruction, we carry out a fact-finding exercise, conduct product and market research, and then make our recommendation of a suitable product for the specific circumstances and requirements, together with confirmation of any/all fees payable.
On client confirmation to proceed, we package and manage the application through to drawdown of funds, with case progress updates along the way.
For advising on and arranging Bridging Finance we charge a fee of up to 1.00% of the loan amount secured, payable on completion. In addition (or instead), we may receive a commission from the selected lender.
Black Book Finance has access to a comprehensive range of Bridging Finance providers from across the market, who can provide:
- Residential Bridging – First or Second Charges
- Commercial/BTL/HMO Bridging – First or Second Charges
- Purchases Under Value (PUVs) – 90% LTPP (or 70% of MV), whichever lower
- Auction Bridges
- VAT Bridges
- Development Exits
- Rates from 0.75% pm
- LTVs as high as 85% – for refurb bridges
- Rolled-up, or retained (non-serviced), or part or fully-serviced interest
For full access to our Bridging Finance client-advisory service, please register here.
Every client has unique requirements so for a rapid assessment, turnaround and terms either: