Fast and Efficient Short Term Finance
Bridging Loans are an ideal option for clients requiring short-term loans to finance a funding gap where there is a clear exit route. Bridge Finance facilities are available for a term from 3-24 months, sometimes longer. Bridge Financing is popular with property developers, investors and property traders or dealers.
Bridging Loans are used for clients requiring:
- Purchases of land (with and without planning)
- Residential refurbishments (not owner occupier)
- Auction Purchase (usually 28 day completion)
- Residential and commercial investment purchases – for quick purchase, as the main stream lenders can sometimes be slow and you potentially have seen an opportunity for purchase that you don’t want to miss out on
- New build residential or commercial property development and Developer Exit Finance
- Refinancing of senior debt facilities coming to maturity to give time to acquire a new senior debt facility or to sell the property
- Sales bridge
- Part completed developments
- Bridge-to-Bridge (re-bridge)
Typically, the interest is serviced monthly resulting in a higher day 1 cash release. Servicing monthly would be dependant on the clients ability to service the interest payments. Where clients are unable to fully service the loan, interest can be capitalised. The estimated interest capitalised is netted off the amount received on day 1.
Bridge Finance loans are normally based on the existing use value of the land or property. Our lenders usually can lend up to 70%-80% of this value. In some cases, we can achieve clients up to 85% LTV (Loan To Value) on the purchase price. This would be subject to a valuation coming in higher than the purchase price. Depending on the LTV, and risks associated with the property, lenders may or may not require personal or corporate guarantees.
Century 10 Real Estate Finance source bridging loans far quicker than other forms of finance as they are predominantly based on the value of the asset(s). This means we can potentially achieve funds on a bridge facility in as little as a week, or less, when required.
How we can help:
- Through our extensive network of lenders, funds and bespoke bridge lenders, we can source and arrange our clients the a bridge facility based on their requirements.
- Negotiate with lenders to assist clients achieve preferable bridging loan terms to suit their needs
- Review the clients requirements and assist with an instant indication of the likely loan amount, rates, fees and estimated time to obtain funds.
- Assist throughout the loan process from start to finish with the aim to achieve the deadlines required. This minimises the impact on the client’s time, allowing clients to focus on other areas of their business.