Commercial or residential bridging loans are short term property finance which can be organised within two to three days. They are agreed for a set, short period of time, usually between one and 12 months.
Bridging Finance is a short term finance solution, designed to help you complete your purchase on a new property before selling your existing home, and also helps the swift purchase of land for development.
Bridging Finance is not only available to purchase property, bridging loans are also available to purchase land for development purposes.
You may have seen a bargain plot of land for sale, in a great location and with fantastic development potential either for a self-build property to live in yourself or for the development of one or more properties for commercial purposes.
It is possible to secure bridging finance for land very swiftly in comparison to other forms of commercial financing, helping you to complete and secure a purchase within a matter of days, not weeks and months. This can often mean the difference between securing the land purchase or losing out.
As always, bridging finance is used as an ‘interim funding measure’, not as a permanent funding option. However, where it may be difficult or nigh on impossible to obtain other types of finance for development land purchases, bridging finance can offer an accessible funding solution often with limited underwriting criteria providing the land is assessed to represent a viable development opportunity and you have the means to move the project through to completion.