Property & Commercial Finance
Bridging Finance
Understanding Bridging Finance
Bridging Finance Basics Bridging finance, sometimes referred to as high speed property finance, is a ‘financial tool’ used to raise funds against the value of a property. These funds can be used for any legal purpose, maybe to purchase a property or to raise capital for some other reason. Bridging finance is primarily for short term purposes – typically one or two months but can be for up to two years. Literally any residential or commercial property which has provable value can be used to secure a bridging loan. Some of the main purposes to which bridging loans can be put: Purchase of a residential or commercial property before the sale (or re-mortgage) of an existing property. Purchase of a property where speed is essential to clinch the deal. Funding can be arranged for property in need of substantial repair or refurbishment pending a long term mortgage. To avoid bankruptcy of other financial crisis by releasing the equity in a property. Bridging loans can either be based on the “restricted sale value” of a property or the Open Market Value (OMV). The difference is simply down to the preference of an individual lender, a specialist commercial broker will be well…
Commercial Bridging Loans
Commercial bridging and short-term property finance. Commercial bridging finance can provide the capital to purchase commercial property or land and can be available for a whole range of business finance requirements. A commercial bridging loan can be on the basis of a 1st, 2nd or even 3rd charge and be for any purpose, which means it can be the perfect solution to a financial crisis. Commercial bridging finance is not limited to purchasing industrial property. There are several other uses that the commercial bridging loan can be put to such as: Funding stock purchases Expanding or relocating premises company restructuring Avoiding bankruptcy. A commercial bridging loan is flexible enough to accommodate most circumstances. After you have put in all the hard work to secure a great deal on a commercial property or business acquisition it would be a great shame to lose the opportunity due to a lack of funds. A commercial bridging loan can fill the gap between your available cash and any shortfall. If you are a business and planning the purchase of a factory, office or other property for commercial purpose, then it is likely that you may need some additional finance. Before you consider selling an asset…
Non Status Bridging Finance
Non Status Bridging Finance There are now specialist lenders who provide non-status bridging finance against all types of land or property. These lenders are able to provide a decision very quickly, usually based on the valuation of a property, with funds released within a matter of days. A non-status bridging loan allows a client to borrow money against the value of a property on a completely non-status basis. Unlike mainstream lending, non status bridging lenders are generally looking at minimum lending terms of between 2 months and 12 months. Although some lenders are even more flexible and do not impose a minimum period. Two of the main features of non-status bridging finance are the speed of completion and the large sums available. Typically a short term property loan is arranged and ready for draw-down within a working week (subject to a recent valuation being available). Non status bridging loans can be arranged for all types of commercial and residential property including: Property development Property Auction Purchases Land (with or without planning permission) Refurbishments and conversion projects. Refinancing existing investments Manufacturing and industrial properties are also acceptable although the loan-to-values may be restricted. During the purchase of property, land or a…
Bridging Finance News
When speed matters Bridging Finance can come to the rescue.
Commercial Mortgages
Pub Mortgages
Commercial Mortgages for Pubs Discover how straightforward it is to find the right pub finance for your business. A pub mortgage broker can help you find the best commercial mortgage for a pub, club or restaurant. Pub mortgages should offer real value for money and meet your business needs Purchases Sitting tenant purchasing a freehold. Up to 85% Loan to Value (100% with additional security) Carry out refurbishment Consolidate other debts Terms from 10 to 30 years No Broker fees [widget id=”text-3″]text-3[/widget] There is a wide range of pub mortgages to choose from, all dependent on your circumstances – this is where using the services of a pub mortgage broker can help save you time and money. Arranging a Commercial Mortgage for a pub. If you are currently searching the market for a pub or restaurant to purchase then talk to a broker today Having your commercial mortgage already arranged can really help when negotiating with a vendor – and it could save you money. Whether you are new to the pub trade or an established business looking to re-mortgage (even if the bank has already turned you down) you can usually find a solution. It is possible to arrange a pub…
Hotel Mortgages
Hotel Finance – Finding the right Hotel Mortgage Discover how straightforward it is to arrange the right commercial mortgage for your guesthouse, bed & breakfast or hotel. A commercial mortgage broker can help you find the best hotel mortgage, one that offers real value for money and meets your business needs. They can help if you are trying to: Purchase or refinance a business Purchase the freehold if you are a tenant. Extend or expand your business Carry out refurbishment Consolidate other debts commercial mortgages for hotels It does not matter if you are new to the hotel trade or an established business looking to expand. A commercial finance broker can usually find a hotel finance solution even if the bank has previously turned you down. It is possible to arrange hotel mortgages for people who have had credit problems in the past. Market leading rates for well performing businesses True Self-Cert Options Up to 85% Loan to Value Poor Credit History no problem No Broker Fees on most transactions If you are currently searching the market for a hotel or guesthouse to purchase then talk to a commercial finance broker now to discover the right hotel finance options open to you. Knowing that you already have…
Bad Credit Commercial Mortgages
Where to go for a Commercial Mortgage when you have bad credit: Is a bad credit record stopping you from purchasing a commercial property? Or are you having trouble paying off your existing creditors and other business expenses? If your credit file contains damaging information, do not despair. There are still commercial lenders offering commercial mortgages to businesses with bad credit. Even if you no longer qualify for other business loans and products because of your poor credit history, there are lenders offering bad credit commercial mortgages to accommodate your needs. A commercial mortgage is secured against commercial property, although it does not necessarily need to be only your business property, if you have other properties they can also be used if appropriate. Credit History and Commercial Loans It is important to understand the difference between credit scoring and credit checking. If you apply to the wrong type of lender they will credit score your application and may automatically reject you. By working with a commercial finance broker you can be sure that your case will be heard sympathetically and avoid the automated systems. This means that if you apply for a bad credit commercial mortgage you will not be…
Commercial Mortgage News
Property Development Finance
Property Development Finance – The Basics
100% Property Development Finance
100% Property Development Finance Property development finance is the term used by lenders and brokers to describe the funding solutions to help property developers undertake projects. These projects can range from refurbishment of a residential dwelling to new-build schemes. So what types of project would qualify for 100% property development finance? The challenge for the property developer is to fund the acquisition of suitable property and have enough working capital left to finance the development work. Historically banks would lend around 70% of the purchase price and 70% build costs. However, these loans are usually reserved for experienced developers or individuals with a high net worth. There are now several specialist property development lenders who will consider loans far in excess of the bank solution. Many of these specialist lenders will fund 70% of the site value and 100% development finance for the build costs. Some will even lend 100% of the full costs, including professional fees and interest roll-up. Plot search and land-for-developers search tool Finding suitable sites for property development is half the battle for successful developers. So, if you are struggling to find the perfect plot, or you find that each time you find one you’re just…
Brownfield Development
Brownfield property development finance Even the most cheerless and and polluted plots of land are being viewed by property developers as attractive propositions for housing schemes. We are well used to seeing old factories and office blocks turned into trendy apartments, but now petrol stations, workshops and even landfill sites are all fair game. Planning policy has historically demanded that 60% of land used to build new homes should be on sites which have had a previous use. Local authorities earn credit for encouraging the re-use of so called “brownfield sites”, not least from local residents who are bound to fight any proposals to build on greenfield sites. Of course there are other more subtle advantages to using brownfield sites, such as social and infrastructure considerations. Plot search and land-for-developers search tool for brownfield sites Finding suitable brownfield sites for development is half the battle for property developers. So, if you are struggling to find the right plots, or you find that each time you find one you’re just that little bit too late then plot search is the ideal solution for you. This service will keep you supplied with an endless stream of ready-to-build plots ahead of the competition.…
Property Development Finance News
There are a number of options when it comes to property development finance. The cheapest and preferred route would be arranging finance though one of the mainstream lenders, but the choice ranges right the way through to specialist non-status lenders.
General Finance
Auction Finance
Property Auction Finance Having concerns about financing property bought at auction is natural, and it is one of the main reasons why people stay away. Aside from worries about arranging property auction finance there are a number of other reasons people are put off attending auctions. These are: Fear of making a mistake and loosing money Uncertainty about how the system works Doubts about whether all the good properties have been taken. You can over come your concerns by researching the property auction process, browsing through auction catalogues and attending a few practice auctions to put your mind at rest. Arranging property auction finance for a property purchase is quite straight forward, and really there are only three important things to be aware of: Most property auction houses will require you to pay a 10% deposit on the day You will be bound by contract to complete within 28 days (or sometimes less) The winning bid is a legally binding contract. So having your property auction finance arranged prior to the auction is a major advantage and can save you time and money. The property auction finance to look for is based on the market value of the property and…
Buy to Let
Buy to Let commercial Mortgages
The UK commercial mortgage market may not be thriving but there are still commercial properties being sold and re-mortgaged every month. The commercial mortgage sector is being helped by low interest rates and attractive rental yields across a very broad spectrum of property types. Buy to let commercial mortgages are being used to purchase and re-mortgage a variety of properties, for example: Semi-Commercial property (flats above fast food outlets) Factories Offices Retail Units [widget id=”text-3″]text-3[/widget] If the property is being purchased or re-mortgaged for investment purposes then one of the most important factors when assessing the application will be the strength of the rental market locally. This is a major consideration because it is the rental income which will dictate the size of the commercial mortgage. The difference between commercial and residential investment property Unlike the residential market where calculating the rental incomes for a property is very straightforward, calculating the potential rental income for a commercial or semi-commercial buy to let property is much more complicated. This is because of the vast array of different types of commercial property, for example a the potential income for a retail unit on a high street will normally be much easier to…
Buy to Let Re-Mortgage Calculator
Have you been thinking about a re-mortgage for your buy to let properties? As property prices start to rise again the range of Buy to Let mortgages is inevitably going to increase. But if you’re tempted it might be worth considering whether you are actually going to be better off in the long run. We hope that this calculator will help you compare your current payments against any quotes you are considering. First things first: This is not financial advice We are not recommending a product We are recommending that you search the market and take professional advice! So having established the above points lets consider what you should do: Check the balance on your current mortgage Check the rate you are currently paying Check the rental income you are getting Research the market and get one or more buy-to-let mortgages you would like to compare. Fill the in the form below and the calculator will show you the saving, and how long it will take you to break even. To get an accurate picture it is very important that you include the financing costs, such as set up costs, legal/valuation fees, and broker fees. Mortgage Refinancing Calculator This JavaScript…
Buy to Let News
Secured Loans
Guide to secured Loans Welcome to our guide to secured loans. Whenever your are considering a second mortgage or secured loan the process can be confusing and complicated – even overwhelming. After all you are embarking on one of the biggest financial decisions you will ever make. It’s important that you understand what to expect when applying for a secured loan before you sign your name to the dotted line. Too often, consumers need money quickly and sign loan agreements without understanding how much they are paying in interest or fees. Educating yourself about secured loans can help you avoid common pitfalls and reduce the likelihood of falling victim to predatory lending practices understanding secured loans: Building a solid foundation of knowledge about the secured loan borrowing process is important. Here are five steps to help you begin your journey. Before you apply for a secured loan try to find out as much as possible about what’s available in the market place. Gather all your financial documents; check your credit history and fix any blemishes on your credit file before you apply for a loan. Determine how much you can truly afford to borrow, create an accurate budget. Keep accurate…
Understanding the Difference between Credit Checking and Credit Scoring
There are three main credit reference agencies working in the UK: Equifax, Experian and Callcredit. These firms maintain a record of the relationship between individuals and lenders. Note, not all lenders report to all credit reference agencies. In the context of business finance Dun & Bradstreet were the main source of credit information, however the other companies are now taking more interest. It is very important to understand that when you sign an application form for a business loan, such as a commercial mortgage or lease agreement you are usually consenting to credit checks on your company and its principals i.e. the directors. If anything in your report is out of date or gives a misleading picture of your willingness or ability to repay a loan, it can affect your chances of getting the best deals. It can even lead to outright rejection by lenders. How does Business Credit Checking work? Because all commercial mortgages are manually underwritten you can avoid automatic rejection for a loan by being as open and honest as possible. If you are already aware of a credit problem it is far better to offer an explanation at the outset rather than be found out by…
General Property Finance News
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