Bridging finance is commonly used when you need capital in order to build or redevelop a property. You may need credit to build or develop a property for commercial use. Alternatively, you might want to construct or renovate your own home or an investment property. You can also use a bridging loan if you have borrowed capital from several lenders to fund work on a property you have already started developing and later plan to sell. Bridging finance for property development is known for being particularly flexible, and the scenarios in which it can be used is very broad.
A recent case involves a client who was looking to refinance an existing bridge loan. The property in question was a Grade II listed, 5 storey terraced building in Bath, which had been unoccupied for a several years and was in a poor state. The client wanted to renovate the property and convert it into five one-bed studios which would be let to students.
With the works being delayed by Covid-19, the client was unable to refinance onto a term, which meant re-bridge, allowing the client to finish the works, was an ideal solution in this case. Here, we were able to source a 70% LTV (loan-to-value) mortgage at a competitive rate of 0.78%.
Enness has access to all the leading lenders in this specialist part of the market. Enness will also be able to help if you need a financing solution to a cashflow or capital problem that’s arisen during your property development. Whatever you need property development finance for, your bridging finance broker will ensure you have the funds you need, when you need them and to secure you the best deal available on the market.