Bridging finance surge in demand

by Neil Patterson

6 years ago

Bridging finance surge in demand

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Bridging finance surge in demand

Brooklands Commercial Finance have witnessed a significant upsurge in demand from referred Property118 readers for bridging finance as traditional secured lending markets become less accessible.

No longer seen as a lending product of last resort, bridging finance has become a mainstream vehicle for a wide range of purposes. Bridging finance can be arranged quickly compared to high street commercial loans with funds being made available often within days rather than weeks. A short-term lending facility can be used to secure an important purchase or unlock a value enhancing project to existing securities and more.

These are just some of the recent deals which Brooklands  have been able to help readers of property118 with:-

  • Debt Forgiveness Deal –Reader X owed £700k on a £900k residential investment portfolio in the West Midlands. His current lender wanted out of the deal and was prepared to accept £550k, the bridging financier was able to provide a no questions asked short term solution in order to make it far easier to present the refinance deal cleanly and without the mention of write offs to a traditional longer term finance provider
  • Auction Pre-Approval –The Bridging finance company could lend against the surveyor’s open market assessment rather than the purchase price, enabling the client to buy with minimal deposit.
  • Revolving Credit Facility – Reader Y owned £600k of unencumbered properties. A facility was put in place of up to £390k, enabling him to draw down tranches of funds as and when required. With valuations and legals already done, he was effectively a cash buyer and could buy new stock at attractive discounts.
  • Two-Tier Residential Investment Refurbishment Deal – In this case the property was in need of modernisation. Reader Z was a builder who paid fair value for the property and was provided an ‘initial advance’ for the purchase followed by a ‘further advance’ based on the uplifted value after modernisation. After spending just £5k on works, the client added over £20k to the capital value.

Brooklands are a whole of market commercial finance broker and can offer Property118 readers a no obligation discussion as to how a bridging loan facility can be structured to support your business goals.

If you require assistance or an initial discussion with Brooklands to help you arrange the most appropriate funding for your commercial project please call Neil Patterson – telephone 01603 489118 or email your requirements and contact details to npatterson@property118.com



Comments

6 years ago

Bridging finance covers up the short term need of a money between purchase and sale of a property or a business transaction so it is a nice option to use for short term money requirements.


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