There are different types of bridging loans and each may attract different terms from the lender. The main difference is if the loan is secured on your primary residence or on another property and if it’s another property is it occupied or unoccupied.
Also, when the lender assesses the loan to value, they are willing to offer, and if indeed they want to lend at all there are many factors.
These include but not limited to:
- Liquidity/confidence in the UK property market at that time
- Properties condition i.e. does it have a working kitchen and bathroom
- Is the property structurally sound, is it derelict, semi-derelict, Japanese knotweed or non-standard construction has it got dry rot, wet rot, or wall tie problems
- If the property is a freehold or leasehold, and if it’s a leasehold how long is the lease
- Is the property a conventional house or flat or is it an HMO
- Is the property ex-council or local authority
- Could the lender suspect a sale and rent back arrangement
- Has the previous owner owned the property for six months or less
- Has the borrower got a reasonable credit score and track record in property transactions
- Has the borrower got other properties that they own even if it’s not necessary or they are unwilling to sign them away
- Has the borrower got good personal income and a monthly surplus after their regular monthly outgoings
- Has the borrower got an acceptable exit from the bridge finance like sale of another property (between exchange and completion) or a conditional mortgage offer whether it be owner-occupier or but to let
These properties can include properties that are leasehold with a lease of fewer than seventy years. Also properties under fifty thousand pounds. Lenders are very fussy about property close to mines, areas of landfill, flooding or subsidence.
Sitting tenants and Regulated Tenancies
Most lenders are unwilling to lend against property with long term sitting tenants. Regulated tenancies come under a similar category.
Leasehold property with a defective lease
Sometimes novice landlords don’t use proper solicitors to draw up lease agreements. A poorly done lease in the land registry can result in a lenders rejection for that property.
Properties with Boundary disputes or other legal problems
Planning applications need to be done correctly, or a lender may find the property unfit to a mortgage. Buy to let lenders don’t like properties with boundary disputes either.
Open Bridging Finance
Open bridging loans are loans that don’t have an exact date of repayment
Closed Bridging Finance
Closed bridging loans have a fixed cut off where the loan has to be paid back
Reasons for getting residential property bridging finance:
Chain breaking – when a property purchase is under threat by the breakdown of the sale of another property
Buying at auction – property purchase where completion is required very quickly
Refurbishment – when some long term mortgage lenders refuse to lend based on the property’s condition. The bridge can allow time for work to be completed then longer-term finance can be put in place
Cash purchase – secure funding on an existing property to make an all-cash purchase of another property. Having cash can allow for a speedy purchase.
- Lowry Bridging Finance
- Commercial Property Development Finance
- 85 Btl Mortgage
- Precise Mortgages Bridge-To-Let Bridging
- Lloyds Bank Lifetime Mortgage
- LendInvest Development Exit
- Kuflink Bridging Finance
- Ortus Northern Ireland Short Term Loan
- Santander Commercial Bridging
- Bridge Bank Capital Bridging Finance
- Precise Mortgage Buy To Let Deals
- Together Auction Finance
- TSB Equity Release Mortgage Rates
- Semi Commercial Property
- Paragon Debt Consolidation Loans
- Secured Loans Equifinance
- Remortgage With Poor Credit
- Yorkshire Bank Short Term Loan
- Yorkshire Building Society Equity Release Mortgage Rate
- Natwest Mortgage Bridging Loan
- Bridging Loans London
- Rbs Bridging Loans
- Non-Status Bridging Loan
- Ortus Bridging Loan Example
- Self Employed Mortgages With One Years Accounts
- Nationwide Release Equity
- Santander Bridging Finance
- HSBC Equity Release Plans Uk
- Remortgage Best Deals
- Walmoor Capital
- Buy To Let Mortgage No Minimum Income
- 1Ststop Uk
How much cash can I get?
You can achieve 65% of your property’s value. For example, if your house is worth £360000 you can release £234000.