Property Development Bridging Loans
There are many tiers of finance for property developers, but none with the speed and flexibility of a short term specialist lender.
Bridging finance can be an effective method of funding conversions, renovations or even new build development.
One of the most frustrating things for a property developer is finding that after spending time researching a prospective development that the site has been sold to someone else who has cash! Bridging Finance eliminates this problem.
Do developments ever proceed entirely to plan and budget? Answer, not always! If your lender is withdrawing support then bridging finance can save your development.
Are your deals typically fast refurbishments i.e. buy, renovate, sell or let? It can take a bank a month to complete and deposit the funds for your property purchase and refurbishment. If a refurbishment takes 2-3 weeks more time can be spent waiting for the lender than actually doing the work! By using bridge finance you could turn round many more developments than using a traditional lender. Isn't that well worth the extra cost?
We can finance up to 75% of the purchase and 100% of the development costs. Funds can be drawn down in arrears against completed works and therefore increased site value. Interest can be rolled-up into the loan subject to the overall loan not exceed 75% of current to value.
For larger projects we can arrange 100% bridging finance against the Gross Development Value of a build. Due to the extra risk, this kind of finance will take about the same time to complete as a traditional lender, but of course for bank level funding you will have to provide 30% of the cash requirement!
Eland Business Services Limited are specialist brokers for property developers. If you would like a free assessment on the prospects of funding your next project why not contact us and discuss the details.