Bridging lending increased during the last six months of 2016, and with more lenders moving into the market Harry Landy, Sales Director of Enterprise Finance explains how the loans work and how they can help your clients.
Why your client might want a bridging loan
· The need to complete quickly. For example a property developer might be able to secure a better deal the quicker they compete.
· When they buy through a property auction. Buying through auction means completion needs to take place within 28 days, which is when buyers turn to bridging loans.
· They are in a broken property chain. The buyer may have found an alternative property and still need to complete despite not selling the first property.
· They want to buy and develop an uninhabitable property. They can access and satisfy a loan before remortgaging to a mainstream lender.
· Are renovating or developing a current property.
· Have to get planning permission, or are looking to complete a lease extension.
This comment first appeared in FTadviser