High Value Property Bridging

High value property is a highly competitive sector of the UK real estate market, and requires specialist bridging lenders to provide bespoke financial solutions

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Throughout the UK there are many investors who make a living purchasing and trading in high value property, and these professionals rely on high quality bridging finance in order to enable flexibility and stability within their sphere of operations. Without the backing of highly experienced financiers it’s impossible for these developers and investors to conduct business in an efficient and timely manner, and bridging finance is vital to the continuing prosperity of the high value property market.

While there are many bridging lenders throughout the UK, only a small proportion of these will be able to provide the dedication and expertise that high value property bridging requires. While many bridging lenders throughout the sector offer loans from £10,000 upwards, the bridging providers who cater to these top end property investors typically don’t deal in loans under a million pounds. When funds of this size are changing hands it’s vital to have access to the experienced, trustworthy advice of a high value bridging expert, and the UK’s bridging finance sector is able to provide several such lenders.

The world of property finance is highly competitive, with businesses leveraging their assets as much as possible in order to acquire new investment opportunities. This can leave developers exposed to financial difficulties if inappropriate loans are taken out, which means that before proceeding with a bridging loan of any type, investors should be sure to consult an experienced financial advisor.

Bridging Loans for High Value Property

Bridging loans are widely used throughout the property development sector: they enable developers to quickly seize opportunities and kick-start projects without the need to obtain long-term financial backing, which helps keep the real estate market buoyant. However, the needs of high-value property investment are substantially different to many of the other areas in which bridging lenders operate, and require a highly experienced touch to handle properly.

When budgets are large and the margin for error is very low, it’s vital for borrowers to know that their lender can provide a highly dedicated team with a great deal of experience in their sector. The needs of high value bridging finance require a team of expert lenders that can exceed their borrower’s expectations at every turn, which is why high value bridging lenders pride themselves on providing exceptional service throughout the lending process. Bridging lenders in the high value property lending sector have several key advantages over their competitors, and must maintain a market-leading service in order to remain at the top of the game. Some of the key aspects that high-value lender requires are outlined below, along with the ways in which these benefit their clients.

Contacts with Specialised Financiers

Lenders who deal with loans in the tens of millions must have links to the right sort of financiers, or they will struggle to secure competitive rates for their clients. Lenders must know which loans are suitable for which investors, because this allows them to quickly and easily match borrowers to finance providers. Knowing who’s looking to lend and what their appetite is is vital for any high value property bridging lender, and securing competitive rates for their client relies on maintaining close ties with many hedge fund managers, peer-to-peer lenders and private individuals.

Bespoke, Expert Services

Many high-value bridging lenders are based around a small core of experts who are highly experienced in the field. This allows customers to speak directly to a decision-maker and outline their proposal, rather than having to submit to various questionnaires and checks. This ensures a tailored approach to lending that reflects high-value bridging’s need for an individual, personal lending solution.

Speed and Security

Bridging lenders pride themselves on their ability to meet a short deadline, but arranging a fast loan to temporarily cover the cost of buying a bungalow is very different to financing the purchase of a large Kent estate. Working quickly to a timescale becomes harder and harder the more money’s involved, and high value property lenders have a streamlined, dedicated team in place that can work to their client’s timescales in any situation.

Speed is a form of security in itself, because a lender that can move quickly alleviates the pressures of completing a deal in a short timespan. Because specialist high-value lenders can put a loan package together at short notice thanks to their intimate links with the lending community, they can provide their customers with the security of having a stable source of finance in place.

Flexible Finance Options

There are many ways in which high value lenders can tailor their loans to meet each customer’s individual needs. While the demands of high value lending are similar across the board, each and every client will have a different set of requirements that lenders must meet. Being able to meet these requirements is what makes a top-notch high-value property lender, and there are several key areas in which flexibility is vital. For instance, providing adequate security for the loan is of paramount importance; while mainstream lenders might not approve a loan for a client who appears to be over-extended, high value bridging lenders can see past this blinkered “check-list” approach. By offering a combination of first and second charge securitisation, bridging lenders enable borrowers to take out loans for 100% of the costs and fees of their new purchase, while still benefitting from a market-leading rate.

In addition to this, borrowers also stand to benefit from bridging lender’s ability to “roll-up” the cost of the loan until it’s repaid. This allows borrowers to defer the entire cost of a loan (along with its interest) until they’ve sold their existing property, or have obtained a mortgage for their new one. By limiting the impact of the loan on their client’s day to day expenses, they enable borrowers to leverage their assets more flexibly for fast, secure expansion.

High Value Property Bridging Solutions

Bridging loans are the lifeblood of the property investment market, and are a crucial tool for the security and buoyancy of the UK real estate sector. By enabling investors and private individuals alike to benefit from the flexibility and expertise of experienced bridging lenders, high-value properties can be bought and sold quickly and smoothly.

Common Uses Of Bridging Finance

  • Overview

    Bridging loans are short-term financial solutions which are typically found in real estate and a common use is to purchase a property before a mortgage can be put in place.

  • 1st Charge Bridging Loans

    Bridging loans are a flexible form of finance that can be put to many uses; in this article we discuss the application of 1st charge bridging loans and finance

  • 2nd Charge Bridging Loans

    Bridging loans are a highly flexible form of finance, and we discuss why the ability to secure a 2nd charge on a single asset can be invaluable for borrowers

  • Bridging Refinance

    The flexibility and speed of bridging finance makes it ideally-suited to refinancing existing loan products, and helps real estate owners maximise earnings

  • Buying Before Selling

    Buying before selling enables homeowners to break free of their property chains, and can often be achieved with the help of bridging finance.

  • Chain Breaking Finance

    Breaking free of the property chain is crucial for many buyers, and bridging finance is often an ideal way to jump-start a property purchase

  • Discounted Purchase Finance

    Bridging loans can be used to enable the purchase of property at a discounted price, where speed and flexibility makes them an ideal choice for property developers

  • Divorce Finance

    Though it is never pretty, divorce is sometimes simply a fact of life. Bridging finance helps divorces resolve quickly and smoothly with the minimum disruption.

  • Fast Property Purchase

    Completing a property purchase quickly can be highly valuable to many buyers, and bridging loans can offer the ideal solution for a quick purchase

  • Freehold & Lease Extension Bridging

    Purchasing a lease extension or freehold to maintain property’s value is often the right choice for owners, and bridging loans enable fast leasehold extensions

  • High Value Property Bridging

    High value property is a highly competitive sector of the UK real estate market, and requires specialist bridging lenders to provide bespoke financial solutions

  • Hotel Finance

    Bridging loans are an excellent form of finance well-suited to the needs of hotels and hoteliers, and flexible funding solutions can be sought for many requirements

  • Inheritance Tax

    The UK Inheritance Tax is a significant bill for an estate’s executors. Meeting this quickly and easily is a task that bridging finance is ideally suited for.

  • Non-Status Bridging Loans

    Non-status bridging loans enable investors to develop their portfolios without the restrictions of affordability assessments, and are a powerful form of lending

  • Personal Bridging Loans

    Personal bridging loans are one of the most flexible financial products there are, and bridging lenders are able to meet the varying needs of their clients.

  • Property Downsizing

    Downsizing can be a smart move for many property owners, and a stable form of finance such as a bridging loan is needed to provide flexibility and security

  • Quick Purchase Bridging Finance

    Moving quickly can often be make-or-break for a deal, and it’s important that professionals are able to access fast-moving sources of finance.

  • Regulated Bridging

    High value property is a highly competitive sector of the UK real estate market, and requires specialist bridging lenders to provide bespoke financial solutions

  • VAT Bridging Finance

    VAT bills add a hefty charge on to property purchases, and developers must use VAT bridging loans in order to minimise their impact on a project’s profitability

National Association of Commercial Finance Brokers Financial Services Authority Association of Short Term Lenders Association of Bridging Professionals

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