Loan Extensions & Refinance
Property funding solutions
Many properties in the UK are sold on a lease rather than freehold, meaning you must continue to make some payments to the freeholder. And if the lease is let to expire then the property goes back to the freeholder. This can cause an issue when trying to get a mortgage on a leasehold property with less than 80 years left on the lease. In such circumstances, a bridging loan for lease extension can be a prime source for investors searching to purchase property on an unmortgageable lease.
Bridging lenders often only offer their services through intermediaries, meaning you will likely need to apply through a broker to get a bridging loan. If you need a temporary bridging finance extension, it is good to compare deals from as many lenders as possible. Get in touch with Finspace experts and find the solution.
Bridging Finance is a flexible finance option which is generally secured over property, whether it is Residential, Commercial or Land. The term of the loan ranges anywhere between 1 and 24 months. The funds raised can be used for any type of business purpose if there is a robust exit (repayment) strategy.
These loans can fund any type of property refurbishment, ranging from a new kitchen & bathroom to full remodelling, conversions & extensions.
This is a very competitive space in the market and there are some attractive funding offers available at high loan to values.
Development Exit Finance
This type of funding can be used to refinance a development loan onto a cheaper loan whilst the site is sold or refinanced. It can also be used if an existing development loan is approaching or has passed the agreed term, due to project delays for example, and the site does not necessarily need to be completed at the time of the refinance.
Bridge to Let
These are flexible two stage loans which allow an un-mortgageable property to be purchased and refurbished with a normal bridging loan and then flipped onto a BTL mortgage when the property is tenanted.
Property Developers can use this type of loan to acquire or refinance land that either has planning permission or they intend to apply for planning permission for a certain type of development project. This can also be used to change an existing planning permission to increase the project viability.
These loans can be secured over property or land where a property developer intends to apply for or amend a planning permission. This would generally be done to add value to the site or increase the viability of a scheme. Developers either sell the sites on with the benefit of planning or they take the project forward themselves.
Properties bought at Auction require a 10% cash deposit on the day and the transaction needs to complete within 28 days generally. Bridging Finance can be used to help ensure the transaction completes in time and some of our lenders will use the auction legal packs for their due diligence which can cut down on set up costs.