Development bridging loans are the ideal way to quickly raise business finance for property developers, private builders, individuals, partnerships, limited companies including off-shore and single purpose vehicles (SPVs) and limited liability partnerships (LLPs). Funds are typically used to finance improvements to the asset, thus raising its market value and marketability.
A renovation loan for property refurbishment is the optimal way to raise funding for straightforward property purchase and refurbishment projects. The fast turnaround associated with this strategy means that traditional mortgage products are not suitable, as many would include early redemption costs and other costs associated with the lender taking the acquired asset as security.
A property may not be suitable security for a number of reasons, including but not limited to being derelict, having a short lease, damp and dry rot issues and unsound structures which may need demolishing. In many cases, these defects are what make a property attractive to an investor, as they are able to add value by eliminating the problems and thus gain the maximum possible growth in the value of the asset, assuming an appropriately low purchase price. In these situations, development bridging loans eliminate the need for a legal charge (mortgage) on the acquired asset, instead using your existing equity to finance the purchase.
More substantial development projects such as extension, conversion of an existing property into flats, or other structural remodeling will invariably involve planning consent, building control and the engagement of sub-contractors. This larger scope and extended timescale require a different type of cost profile to the simpler renovation projects most non-professional developers may take on.
New-build property development requires capital to be committed to the project for typically longer periods than works to improve or expand existing buildings. As such this is usually taken on by experienced property professionals who may purchase the site with either full or outline planning permission.
Rapid Bridging Ltd has extensive experience in arranging large development loans and we will use this knowledge to assist you in selecting and securing the perfect development bridging loan for your project.
Think carefully before securing other debts against your home. your home may be repossessed if you do not keep up repayments on a mortgageREQUEST A CALLBACK
When you need to raise money from property or land you own, a residential bridging loan can help you:
We’ll arrange your residential bridging loan quickly and easily.