Bridging Loans Surrey
Bridging Loans Surrey
The cost of properties in Surrey can be expensive, however there are opportunities to property developers.
If you are looking to buy a property that is classed as uninhabitable or you want to develop a property and convert a house or office it into flats for example, a Bridging Loan is a way to finance these projects.
Why do people need a bridging loan?
While there are many reasons people take out a bridging loan, property developers are often the most likely borrowers. When these businesses or professionals want to secure an asset, and a conventional mortgage or Secured Loan isn’t applicable, a bridging loan can help. Many property professionals in Surrey would be aware of bridging finance.
However, some of the other common reasons for arranging a bridging loan include:
- Property buyers at an auction have 28 days to conclude the purchase, and a standard mortgage isn’t applicable, so a bridging loan is of assistance.
- When property isn’t habitable, mortgage lenders will not provide finance, but a bridging loan allows the buyer to purchase the home and make suitable upgrades.
- Often, when a property undergoes a “change of use”, such as being converted from business premises into residential flats (Converting Commercial to Residential), a standard mortgage isn’t applicable, but bridging finance is.
- Bridging loans have also been used to resolve breaks in property chains or other temporary matters when concluding a property transaction.
You should be aware that bridging finance can be expensive, especially for property in Surrey.
When you arrange a bridging loan, you should be clear on how you expect to pay off the loan. Some options include selling off the property for profit or refinancing on a Buy to Let Mortgage, Commercial Mortgage or HMO Mortgage.
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Bridging Loan FAQ's
Typical fees that are payable include:
- Lender Arrangement Fee – this could be 1%-2% of the loan.
- Valuation Fee – payable upfront and dependent upon the property value.
- Legal Fees
- Monthly Interest Charge – This is dependent upon the Loan to Value, Security, Overall project, credit profile and experience of the developer.
Related Bridging Loan Information
Bridging Loans Surrey
Product Name: Loans
Product Description: Bridging Loans Surrey
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Kavita
Gary has been great from the start, very professional and friendly. this was my first commercial finance and he answered all of my questions no matter how small & explained everything very well, for me to understand the whole process. I would definitely recommend TMH & if needed use their services again.