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 business there are many things that can go wrong. Non status bridging finance can step in when this happens. Because this type of finance is based entirely on the value of the security there is no time wasted in arranging the facility.
Arranging a non-status bridging loan
A non status bridging loan can provide a solution in cases of a temporary cash shortfall or in a crisis. This normally occurs when a purchaser “pulls” out of an transaction at the last minute or where the client needs to complete a purchase before the sale of a different property.
Another benefit of non status bridging finance is that monthly interest payments are not usually required to be paid during the period of the loan. Interest payments and arrangement fees are often deducted from the initial advance, which can help to ease financial pressure.
A non status bridging loan is effectively a short term loan secured on property by way of either a first or second charge. This can be provided in form of either commercial or residential property . A non status bridging loan can be secured on the purchase of new property, an existing property, or a combination of both.
What Does Non Status Mean?
Status refers to the amount of financial information an applicant is able to produce to support their application.
Non-Status does not necessarily mean that the applicant has credit problems, there are plenty of instances where an individual is unable to supply financial information on a timely basis.
In the case of property development projects a non status loan can be used to help fund a purchase pending a planning application, once planning consent has been granted the developer then switches to a mainstream development loan.
As the name would imply non status bridging loans are often used by people who have experienced financial difficulties, such as CCJ’s and even bankruptcy.