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How Bridging Loans Can Be Used For Home Improvement | 

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How Bridging Loans Can Be Used For Home Improvement | 

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A bridging loan is a short-term, financial solution, the finance facility is available to anyone who requires fast access to capital, and you can get one from a specialist lender. Still, you will need to qualify for one first.

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A bridging loan is a short-term, financial solution, the finance facility is available to anyone who requires fast access to capital, and yo... See More

A bridging loan is a short-term, financial solution, the finance facility is available to anyone who requires fast access to capital, and yo... See More

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How Bridging Loans Can Be Used For Home Improvement

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A bridging loan is a short-term, financial solution, the finance facility is available to anyone who requires fast access to capital, and yo... See More A bridging loan is a short-term, financial solution, the finance facility is available to anyone who requires fast access to capital, and yo...

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A bridge loan, interim loan, or swing loan is a short-term loan. Borrowers usually take out a bridge loan for a period of up to three years. People use the loan to help stay afloat while arranging longer-term financing.

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Bridge loan GLOBAL PROPERTY FINANCE PARTNERS LTD. A bridge loan, interim loan, or swing loan is a short-term loan. Borrowers usually take out a bridge loan for a period of up to three years. People use the loan to help stay afloat while arranging longer-term financing. Borrowers may also apply for this type of loan when they expect to sell an asset. Additionally, bridge loans are ideal for people who expect to come into some money. The terms 'gap financing' and in the UK 'bridging loan' have the same meaning as 'bridge loan.' According to Mortgage Connection, a bridge loan is usually more expensive than conventional financing. Lenders say this is because of the additional risk. Interest rates tend to be higher, and the bank amortizes the costs over a shorter period than in other loans. Bridge loans also contain other additional fees. The lender may also require cross-collateralization and a smaller loan-to-value ratio (LTV). Lenders use LTV to assess borrower-risk. Banks, however, generally arrange bridge loans rapidly with the minimum of paperwork. Bridge loan - real estate We commonly use bridge loans for buying commercial real estate, and to save a property from foreclosure. Additionally, the borrower may want to take advantage of a short-term opportunity. Borrowers typically pay back a bridge loan on a property when they have sold it or arranged to refinance with a traditional lender. They may also pay it back when their creditworthiness improves, or they have completed or improved the property. Imagine your house is for sale, but you have not yet found a buyer. You see another house you want to buy. However, you don't have enough money to purchase it. You could take out a bridge loan to secure the house purchase. You would subsequently pay back the loan when you have sold your house. There are closed and open bridge loans. Closed loans are available for a set period, while open ones have no specific payoff date. Bridge loans - corporate finance A company may need a bridge loan between successive l

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Bridge loan GLOBAL PROPERTY FINANCE PARTNERS LTD. A bridge loan, interim loan, or swing loan is a short-term loan. Borrowers usually take out a bridge loan for a period of up to three years. People use the loan to help stay afloat while arranging longer-term financing.

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Bridging financing is basically a short term loan with coverage for your current home and the new home that you are planning to buy.

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What Is Bridging Financing?. Bridging financing is basically a short term loan with coverage for your current home and the new home that you are planning to buy. The payments schedule is interest-based and depends on the total time taken to buy your new property and selling your current home.

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When to Seek a Bridging Loan for Property Development

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When to Seek a Bridging Loan for Property Development

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Bridging loan for property development is short-term and flexible, and often a crucial financial push to take a development project one phase to the next. For more information, visit Global Property Finance Partners Ltd.
https://www.propertyfinancepartners.com/bridging-loan-for-property-development/.

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When to Seek a Bridging Loan for Property Development

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Bridging loan for property development is short-term and flexible, and often a crucial financial push to take a development project one phase to the next. For more information, visit Global Property Finance Partners Ltd. https://www.propertyfinancepartners.com/bridging-loan-for-property-development/.

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Global Property Finance Partners Ltd: Your Trusted Bridging Loan Brokers

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Global Property Finance Partners Ltd: Your Trusted Bridging Loan Brokers

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Property Finance Partners offer comprehensive and results-oriented finance solutions to real estate investors, builders, developers, corporate and institutional property owners, and landowners as well. Over time Property Finance Partners, have become the most reliable bridging loans brokers. For more information, visit Global Property Finance Partners Ltd.
https://www.propertyfinancepartners.com/brokers/

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Property Finance Partners offer comprehensive and results-oriented finance solutions to real estate investors, builders, developers, corpora... See More

Property Finance Partners offer comprehensive and results-oriented finance solutions to real estate investors, builders, developers, corpora... See More

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Global Property Finance Partners Ltd: Your Trusted Bridging Loan Brokers

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Property Finance Partners offer comprehensive and results-oriented finance solutions to real estate investors, builders, developers, corporate and institutional property owners, and landowners as well. Over time Property Finance Partners, have become the most reliable bridging loans brokers. For more information, visit Global Property Finance Partners Ltd. https://www.propertyfinancepartners.com/brokers/

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A Complete Guide to Joint Venture Property Development Finance

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A Complete Guide to Joint Venture Property Development Finance

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Joint venture property development finance is a popular concept within the real estate realm in the UK and around the world as well. It is the smart way of acquiring funds for a project to ensure that there are no restrictions of capital or shortfall midway. For more information or to get joint venture finance for property development, visit https://www.propertyfinancepartners.com/j-v-partnership/.

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A Complete Guide to Joint Venture Property Development Finance Joint venture property development finance is a popular concept within the real estate realm in the UK and around the world as well. Oftentimes when the developer is unable to arrange the required funds for a particular project or needs emergency financing, midway through the same, they seek out partners (one or more) to raise the capital. The joint venture collaboration offers access to the needed resources and funding from respective partners and helps in well-timed and effectual execution of the development project. In this article, we will walk you through the basic overview of joint venture property development, its financing aspects and the overall advantages. Define Joint Venture Property Development Finance The Oxford dictionary defines joint ventures as a commercial venture that is jointly undertaken by two or more partners that maintain separate identities otherwise. In case of joint venture property development finance, an arrangement is made between the partners to pool their resources for funds acquiring and achievement of a specific set of objectives concerning the project. One can access up to 90% of the project development finances through joint ventures. Potential Reasons for Joint Venture Property Development Joint ventures in the business world come in various forms, and there are multiple reasons why it is chosen as a preferable option. For property development projects there are mainly three reasons why developers seek partners to execute a project. Finance Issues Lack of depletion of funds is one of the most common reasons for joint ventures in property development. Being a capital oriented industry, a significant percentage of the funding needs to be advanced, irrespective of the scale of the project. It is a great option for new developers who more than often lack in equity for the initial projects. Land Formalities A developer might have a great project idea, but face difficulty in unlocking land opportunities, that is the f

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A Complete Guide to Joint Venture Property Development Finance

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A Complete Guide to Joint Venture Property Development Finance Joint venture property development finance is a popular concept within the real estate realm in the UK and around the world as well. Oftentimes when the developer is unable to arrange the required funds for a particular project or needs emergency financing, midway through the same, they seek out partners (one or more) to raise the capital.

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Buying A Home In London With A Bridging Loan

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Buying A Home In London With A Bridging Loan

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So you have found your dream home in London and need to move fast before it is bought by someone else. But the problem is your current home has still not sold, and you don’t have the deposit to buy it.

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So you have found your dream home in London and need to move fast before it is bought by someone else. But the problem is your current home has still not sold, and you don't have the deposit to buy it.

What is the solution? Enter bridging loans; a bridging loan is a short term finance facility that features a quick application process.

There are many bridging loan lenders in the UK, especially in London. One only needs to go to a search engine and enter the keywords bridging loans London, and you will find dozens of brokers and lenders ready to win your business.

How does a bridging loan work?

As mentioned above, bridging loans are a short term finance option, typically between 3 to 12 months in length. In order to obtain a bridging loan, you must have an asset to put up as security against the loan, in most cases, this will be a property. The equity available in your property will determine how much you can borrow with bridging finance. Lenders will go up to 75% in most cases.

What are the costs you can expect?

A bridging loan facility is not cheap, although they are competitive in the UK due to many lenders currently in the market. There are several charges that you must take into consideration when you take this finance option. First and foremost, you will have a monthly interest charge on loan, which can range from 0.40% to 1.5%, and then there are other charges most lenders will levy. See below for more detail.

Interest rate 0.4% - 1.5% (pm)

Valuation fees

Arrangement fee

Solicitor charges

Exit fees (in some cases)

Application fees (in some cases)

Broker fees (in some cases)

A valuation fee is required by lenders to determine the value of the property. Legal fees are also needed, and the borrower is expected to pay the legal charges on both sides. An arrangement fee is typically 1% to 2% of the overall loan amount. Some lenders may charge exit fees and application fees, although in the current competitive market it is not common. Finally, if you are using a bridging loan broker, then, you can expect to pay a broker fee of 1%.

It is useful to use a bridging loan calculator to get to know how much the loan will cost you beforehand.

Two types of Bridging Finance

There are two main types of bridging loans.

Open bridging loan - an open bridging loan has no clear exit strategy. Let's say you are buying a property to sell at a profit, this can take time, and there is no determined date it will sell, so the bridging loan is open and can be extended.

Closed bridging loan - A closed bridging loan has a clear cut exit strategy, in this option you know when you will pay back the loan. For example, if you buy a property and you know you will get a home mortgage on the property by a specific time, you can then repay the loan.

Regulated or Unregulated

Bridging loans are regulated if you are buying a residential property as a home. An unregulated bridging loan is any use for commercial purposes.

Regulated bridging loans are regulated by the FCA, which offers protection to consumers. For more information, please visit the FCA website. https://www.fca.org.uk/.

Home in London

Now that we understand how bridging loans work, let's see how we can use this loan facility to buy a home in London before the current home gets sold.

It would be best if you approached a broker for the application, as the broker will have access to many lenders and find the best deal in the market. The broker will also know precisely how to put together the application process to assure success.

You get enough loan amount to be able to put up as a deposit on the home you want to buy and subsequently get a mortgage on it. Once your old property gets sold, you pay off the bridging loan, that is your exit strategy.

Risks

Please be aware that a bridging lender will have the first charge on your existing property, and if you don't repay the lender in time, it can get messy. Further charges will be added to the loan and worst-case scenario they can repossess the property.

It is always advisable to get sound financial advice from an expert before taking out a bridging loan.

Conclusion

Bridging loans are a unique, fast and flexible form of finance and can work well when you know how to use them properly. They are useful for many other properties related deals such as buying at an auction, property developments, refurbishments, buying derelict properties and property investments. For more information, please speak to a property finance expert like Global Property Finance Partners Ltd.

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Buying A Home In London With A Bridging Loan - ABC Money

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So you have found your dream home in London and need to move fast before it is bought by someone else. But the problem is your current home has still not sold, and you don't have the deposit to buy it. What is the solution?

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How to Find the Right Property Development Finance Solution in the UK!

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How to Find the Right Property Development Finance Solution in the UK!

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Reputed lenders are here with lucrative property development loans for individuals and companies all over the UK! Any builder, real estate investor, commercial property owners or even residential property owners can approach them for easy financing solutions for their upcoming or ongoing projects.

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How to Find the Right Property Development Finance Solution in the UK!

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Reputed lenders are here with lucrative property development loans for individuals and companies all over the UK! Any builder, real estate investor, commercial property owners or even residential property owners can approach them for easy financing solutions for their upcoming or ongoing projects.

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Property Finance Partners Is Here With Easy Bridging Loans!

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Property Finance Partners Is Here With Easy Bridging Loans!

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Property Finance Partners is all set to top the list of real estate finance solution providers with their brilliant loan packages and flexible policies.

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Property Finance Partners is all set to top the list of real estate finance solution providers with their brilliant loan packages and flexib... See More

Property Finance Partners is all set to top the list of real estate finance solution providers with their brilliant loan packages and flexib... See More

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Property Finance Partners Is Here With Easy Bridging Loans!

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Property Finance Partners is all set to top the list of real estate finance solution providers with their brilliant loan packages and flexible policies.

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How to Benefit From the Lucrative Bridging Loans Available In the UK!

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How to Benefit From the Lucrative Bridging Loans Available In the UK!

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Property development projects stuck due to lack of funds? Or maybe you are losing out on lucrative property deals where you wanted to invest because of low funds!

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How to Benefit From the Lucrative Bridging Loans Available In the UK! Property development projects stuck due to lack of funds? Or maybe you are losing out on lucrative property deals where you wanted to invest because of low funds! What you need is a service provider offering bridging finance in London, who will be able to provide you with easy financing options so that you never face such issues with your real estate projects & investments. Flexibility What makes these service providers so popular in the UK is their flexible policies. Bridging loans are short term fast finance, it's relatively easy to get loans approved from these lenders compared to the traditional methods and other financial institutions. This is why most builders, investors, and even the commercial property owners approach them for property financing solutions. But that's not all, there are numerous other benefits of availing such loans. Let's take a look at them:  Good for commercial property holders If you are commercial property developer or investor in the UK, bridging finance can be a good option to finance some of your projects. A developer has the option to purchase land and or even develop the property utilising these loans. An investor can get fast finance with bridging loans when a bargain is on the market to then either get long term mortgage or sell the property at a profit to exit the bridging loan. Bridging loans are also useful for businesses looking to purchase a larger commercial office building, as long as there is an asset secured against the loan then bridging loans are very flexible in their uses.  No reason to compromise In the case of commercial properties, location plays a huge part in the success of the business. If you want to build a reputation in the market, you need to make your brand visible. This can only happen if you have an office at a location where your target audience is based. For example, if you are in the IT business you need an office space in the IT hub of the city and not in some remote areas whe

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How to Benefit From the Lucrative Bridging Loans Available In the UK!

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How to Benefit From the Lucrative Bridging Loans Available In the UK! Property development projects stuck due to lack of funds? Or maybe you are losing out on lucrative property deals where you wanted to invest because of low funds!

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Business Loan for Property Development | Global Property Finance Partners Ltd

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Business Loan for Property Development | Global Property Finance Partners Ltd

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Global Property Finance Partners Ltd provides business loan for property development in the UK. Get Fast & reliable lending for business. To apply, call on 020 3393 9277. For more details, Visit their website!

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Finding the right business loan for property development is an integral part of a development project. There are several business loans available for property development.

There are different types of projects which are classed as property development, below are a list of some property developments

New Build - Building a house or houses/flats from scratch.

Conversions - Converting an existing building into units/commercial.

Extending - Extending or expanding a property.

Renovating - Renovating or improving an existing property

The above list can go for both residential properties or commercial units and in many cases, mixed-use.

As a property development business, whichever type of development project the company is involved in, getting the right structured business loan for property development is essential.

Here at Property Finance Partners, we are experts in Property Finance, and one of the sections we specialise in is structuring loans for property developers.

Our process to get the business loan for the property development project is first to understand the project and what the developer aims to achieve. Property Finance Partners will match the correct finance to the project, which will save money in the bottom line.

Some Loan Options Available for Property Developments
Senior Lending
The senior lending will involve the lender to get access to the first charge above all other debts or loans in the property or land. Learn more about Senior Lending

Why Property Finance Partners for Development Loans

The above are just a few options available to Property Finance Partners; we have established relations with some of the largest and most established lenders in the UK and abroad. So why choose Property Finance Partners for business loans for your property development.

Lowest rates available in the UK from just 4.5% per annum

Access to capital fast

A vast array of financial solutions available

The ability to mix financial products to save money

Five-star customer service

Award-winning company

How to Get Started: Business Loan for Property Development

It is easy to get started and save time and money on your finances, fill in the form below or if you prefer to contact us by email: [email protected] or call 020 3393 9277.

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Business Loan for Property Development | Property Finance Partners

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Finding the right business loan for property development is an integral part of a development project. There are several business loans available for property development. There are different types of projects which are classed as property development, below are a list of some property developments New Build - Building a house or houses/flats from scratch.

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Bridging Loan Calculator | Global Property Finance Partners Ltd

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Bridging Loan Calculator | Global Property Finance Partners Ltd

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Use the Bridging Loan Calculator on the website of Global Property Finance Partners Ltd. It can provide you with all the information you need to make the right choice regarding a loan & get the best rates in the market. Apply for bridging loans & development finance today! Call on 020 3393 9277. For more details, Visit their website!

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The bridging calculator below to get the best rates in the market.

THE BENEFITS OF USING A BRIDGING LOAN CALCULATOR

As you may already know, bridging loans are mainly used for short-term financing, when you need large sums of money on short notice.

This type of loan is usually paid off in 12 months because the annual rate of interest is higher than the standard rates.

In short, bridging finance is fit for short-term loans, and not recommended for long-term ones.

However, such a loan comes with a lot of factors that have to be taken into consideration before applying. Basically, you have to know whether this form of finance is VIABLE for your needs and plans.

In this respect, a bridging loans calculator is able to provide you with all the information you need to make the right choice regarding a loan.

Therefore, today we'll be talking about the characteristics, aspects, and benefits of this practice.

In short, get ready for bridging loans explained!

THE BRIDGING LOAN CALCULATOR

First of all, let's start by looking at what these calculators include, and if there are things that they do not cover as well.

Before relying on such a calculator, it is important that you understand it well and are able to use it properly. So that you don't run into any errors that might have an "influence on your future plans".

Overall, the best-bridging loans calculators out there will include and cover the following information:

The duration of the loan

The amount of money that's required for you to borrow

The value of the property that will be used as loan security

Whether or not the property is used as security

Data regarding any balance of a current outstanding mortgage

Either rolled up or monthly interest

The early settlement amount

All the information above, as well as data related to it, should be included in every good calculator. This is the data you need to be able to calculate exactly what you are interested in.

However, keep in mind that there are some things that a bridging calculator may NOT include and cover - mainly, additional fees such as:

With this information in mind, let's take a look at the benefits of using such a calculator.

THE BENEFITS OF USING A CALCULATOR

As mentioned before, bridging finance can be seen as an alternative form of lending. Preferred by many people that don't wish to rely on traditional mortgage finance.

Even though this type of loan is becoming more and more popular, there are still people unaware of how they work.

Therefore, a calculator is meant to help you calculate the repayment schedule, as well as determine the terms of such a loan.

Moreover, a bridging loan calculator will show you how the fluctuations in interest rates can influence your overall monthly repayments.

Basically, you'll have full control over your loan, and you'll know exactly what to expect from it.

A calculator as complex as this is essential for anyone interested in applying for bridging loans, as these represent a more expensive form of finance than the aforementioned traditional mortgage or even bank loans.

While they work well for a shorter period of time, bridging loans CAN become difficult to handle if one of your existing properties fails to sell, for example.

NO HIDDEN FEES OR OTHER TYPES OF SURPRISES

Obviously, a calculator is best to use before you actually apply for such a loan.

It helps you explore all the options you have in terms of bridging loans, and it also highlights all the typical charges and fees that you can expect to deal with when applying for your loan.

Naturally, one of the main benefits of a bridging calculator is that it helps you understand everything about your repayment obligations.

You won't have any surprises, hidden fees, or other things that you should take into account other than what the calculator shows you.

Of course, do consider the fees that most calculators may not include - those that we've mentioned earlier.

UNDERSTANDING DEVELOPMENT FINANCE WITH A CALCULATOR

A calculator is also used as a property development loan calculator.

And one good thing about it is that you can change the rate of interest to be in line with the loan to value factor that you require, in order to be provided with a more accurate indicative quote.

Moreover, if you enter a term of 12 months for the loan, the overall cost provided by the calculator will assume that the interest is paid over the full them.

Usually, bridging finance is paid off before their full term. Mainly because you will pay interest only for the time when you actively use the loan.

There are also some factors that influence the cost of the loan. Such as the loan to value, property location, whether the property is regulated or unregulated. As well as lender fees, legal costs, survey fees, broker fees, and loan exit fees.

Just as we mentioned before, keep in mind that, while some of these factors may be included in the bridging loan calculator, some of them will not be covered by it.

Thus, you have to take it into account separately so that you don't miss any of the things that you should pay.

FINAL THOUGHTS ON BRIDGING LOAN CALCULATOR

As you can see, a bridging loan calculator is a perfect tool for you to see what you should expect after applying for such a loan.

Therefore, finding the best bridging loan calculator in the UK is quite important, As you'll want it to cover as much data as possible so that you get the information you need out of it.

However, even if you think the calculator has provided you with all of the information you need. It is still recommended that you consult an expert.

This way, you can make sure that you didn't miss anything or that you don't have a credit score that may influence the results of the calculator when applied in real life.

In short, such a calculator is a great place to start and to get an idea on how you should manage your loan, repayments, interest fees, and so on.

To apply for a Bridging Loan and to find out more

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Bridging Loan Calculator | Bridging Loan UK | Property Finance Partners

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The bridging calculator below to get the best rates in the market. As you may already know, bridging loans are mainly used for short-term financing, when you need large sums of money on short notice. This type of loan is usually paid off in 12 months because the annual rate of interest is higher than the standard rates.

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Bridging Loan Rates UK | Global Property Finance Partners Ltd

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Bridging Loan Rates UK | Global Property Finance Partners Ltd

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Looking to get a bridging loan? Global Property Finance Partners Ltd offer some of the best & lowest bridging loan rates in the United Kingdom property loans market. Call 020 3393 9277 to apply for your bridging loan today! For more details, Visit their website!

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When you think about taking out bridging finance, there is one thing you should consider before making the first step: the rates.

Taking out such a loan usually depends on the bridging loan interest rates available at the time you take it out. Therefore, it is in your best interest to find the best bridging loan rates.

Since it takes a few months until the loan period comes to an end, there are some ways through which you can pay your interest. It can be monthly, in a rolled-up deal or through retained interest.

This type of finance usually takes up to 12 months. So you need to be aware of the rates before getting involved with this form of financing.

Bridge loans have the advantage that they do not apply exit penalties if the applicant pays them off within the term.

They also have interest rates, which apply for the amount of time the applicant is using the loan for. Having said that, if you repay the loan in 5 months and 8 days, for example, the interest is charged for that period instead of the full 12 months term.

What Are the Bridging Loan Interest Rates?

Bridging loan interest rates refer to the percentage a lender charges from a borrower for the use of the loan. In the UK, they are influenced by the Bank of England base rate.

As a result, the bridging loan rates in the UK typically go from 0.33% to 1.5% monthly.

For instance, for a £100,000 loan, an interest rate of 0.43% would result in a monthly interest of £430. A 0.95% rate would result in a £950 interest, a 1.50% one in interest of £1,500, and so on.

How Does a Lender Calculate the Interest Rate?

The lender calculates, rebates and charges bridging loan interest rates UK in different ways. For instance, when clearing the loan earlier, there are no penalty charges. Despite setting it for a 12 months period, paying it off earlier will have no bad consequences on the borrower.

1 month is the minimum loan term. So, if the borrower ends up paying off the loan during that period, interest will only be charged for that month. However, it's important to remember that it will be paid for the full month, even if you repay it earlier than 30 days.

This changes if you pass the first-month mark and repay it throughout the rest of the loan term. Having that in mind, if it takes you 4 months and 18 days to pay off the loan, then you will only be charged interest for those 4 months and 18 days. Therefore, the rest of the days of that month will not be charged for.

Concurrently, if interest is rolled up, then it will be charged on a monthly basis on the balance of the account. Since rolled up interest doesn't require interest payments, the charge will apply to the balance monthly. As a result, the balance will grow each month.
Learn more on bridging loan costs
How Can You Calculate Bridging Loan Interest Rates?

You can calculate the interest rates through a bridging loan rates calculator. Normally, a bridging loan website should have a calculator where you introduce specific information and reveal how much you will be charged when borrowing.

They don't always calculate monthly repayment figures. But rather the interest they charge each month, as well as the lender's facility fee.

You will have to fill in a form where you introduce the number of security properties you have to offer, as well as the valuation of one property.

You also select the type of bridge loan you're looking for. Once you fill in all the empty spaces, you will reveal the bridging loan interest rates.

What Influences the Bridge Loan Interest Rates?

There are a few aspects that could influence the bridging loan interest rates, such as:

When you apply for a bridge loan, one of the requirements is that you have a security property that the lender can take if you don't repay the loan on term.

It ensures that no losses will be suffered by the lender, as the money will be recovered.

Although many lenders just want the borrower to have a security property and don't take into consideration its condition, others are different.

The good or bad condition can impact the monthly interest rate for some.

Your credit history will be checked prior to the lender accepting your application. If your credit history is good, then the interest rate won't be negatively impacted.

However, if the borrower is known to make late payments, has IVAs, County Court Judgements or bankruptcies, the interest will increase.

Another decisive factor when it comes to the final interest rate is the borrower's income. The lender wants to make sure you have the means necessary to repay the bridge loan on term.

It applies to people who are retired, employed, self-employed, but also to businesses that apply for a loan. Your ability to repay the loan and interest will influence a lender to come up with the best, most competitive rates.

The amount of equity you are able to provide will also be important in the bridging loan interest rate decision. If you have enough equity, the lender takes a smaller risk. Therefore, is more willing to offer a lower monthly rate.

Current Bridging Loan Rates as of May 2020

Final Thoughts

Bridging loan rates in the UK may vary, as shown previously, depending on a number of factors.

Equity, secure properties, income, credit history and more could potentially increase or decrease the rates. Luckily, if you want to estimate how much you will be charged, most bridging loan lenders offer a calculator where all you have to do is introduce specific information.

To find out more or apply for a loan call us on 020 3393 9277
Property Finance Partners Home

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Bridging Loan Rates UK | Bridging Loans | Property Finance Partners

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When you think about taking out bridging finance, there is one thing you should consider before making the first step: the rates. Taking out such a loan usually depends on the bridging loan interest rates available at the time you take it out. Therefore, it is in your best interest to find the best bridging loan rates.

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Know about Open Bridging Loans Vs Closed Bridging Loans 

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Know about Open Bridging Loans Vs Closed Bridging Loans 

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Global Property Finance Partners Ltd provides provide quick bridging loans & finance solutions in London UK for a range of properties. Get information on the differences between an open and closed bridging loan. Apply for a Bridging Loan today, call 020 3393 9277! For more details, Visit their website!

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The differences between an open and closed bridging loan and answering questions about the comparison between open and closed bridge loans so as to determine which option will be for you.
Get a No Obligation Bridging Loan Quote or Call 020 393 9277 ✓ Borrow up to 80% LTV
WHAT IS A BRIDGING LOAN?

A bridging loan is a loan that bridges the gap of purchasing a property or asset while the current property or asset sells.

This loan is short-term. You'll be able to get the money in some cases within a week after the loan application.

A bridging loan is fast, flexible and short term, typically 6 - 12 months.

Bridging loan interest rates may be more expensive than a regular mortgage, due to the loan being riskier and shorter.

So for people who are looking to buy a new home and company directors who are in need of quick cash flow for a short period for their business bridging loan can be an ideal solution.

These loans can be classified into two types, one is a closed bridging loan, and another is an open bridging loan.

An open or closed bridging finance will ultimately depend on the deal. Let us examine further.
Understand more on what a bridging loan is
WHAT IS A CLOSED BRIDGING LOAN?
A closed bridge loan has a distinct exit strategy, to be eligible for a closed bridging loan, you must have a clear exit strategy and repay the loan in full by an agreed date.
Bridging lenders who distribute a closed bridging loan gets a clear understanding of your financial structure and the exit strategy. Hence a closed bridging loan has a lower interest rate than an open bridging loan.

A closed bridging loan facility guarantees the creditor gets their invested money within the specified time.

If a borrower fails to refund the amount of loan, then the creditor has the right to auction the secured property to get their money back. (There are penalty steps before the auction).

The borrower can borrow up to 80% of the property value.

EXAMPLE

Mr Richered wants to buy a 50,000₤ home within a week, and he has an existing property of 65,000₤.

The lender offered him a bridging loan with 1.5% interest for three months after checking the viabilities of his mortgage. He accepted the terms and conditions of the lender.

The lender approved 52,000₤ loan for 1.5% interest in for three months. And the credit was passed within a week.

He got his new home within a week after he borrowed the money from the lender.

He refunded the creditor before the exit time with the selling price of his old property, which he sold after one month of getting the loan.

WHAT IS AN OPEN BRIDGE LOAN

An open bridging loan has no clear exit strategy. The repayment method is open, for example, the borrower sells his equity shares or after he gets the profit of his upcoming business deal at no specific date.

The interest rates can be dependent on the evidence of the borrower's income.

An open bridging loan is typically for the short term. So a borrower can borrow up to 18 months at a typically higher interest rate, and the credit can be extended.

For example, you may be looking for share sales at the end of the year for of your company, and you are in the middle of the year and require some finances short term for a particular project or deal.

In this case, you can take a bridge loan for six months and use the money on the project and repay the funds with the sale of the shares.

EXAMPLE

Mr.Rockey wants to catch the Christmas season for significant sales of his products, but it is currently in the middle of June, and he needs money for the preparation of December.

His financial advisors recommended him a bridge loan for six months with a 3% interest rate per month.

Having a look at his previous business profits, the lender decided to give him a 50,000₤ loan for his business in 3% interest. (This is the 65% of his net profits)

He accepted the offer and applied for a loan.

He got his expected loan in 48 hours, and he started his preparation for Christmas.

After the Christmas season, his plan worked out, and he refunded the amount of loan he took from the bank.

Mr. Rockey's Loan related transactions are:

OPEN VS CLOSED

A closed bridging loan is more beneficial for a borrower than an open bridging loan because of an exit route and gives a lender an actual date to get the loan repaid. So the lender accepts lower interest rates.

Bridging loans are un-regulated unless it's against your personal property, the borrowers should have to be watchful whether there are no hidden charges or extensions while they are taking the loans.

If the borrowers have a precise completion date to get the money of the project, they can choose the closed bridging loan, or if they don't have the exact completion date, the open bridging loan is perfect for them.

An open bridging loan is more expensive than a closed bridge loan

A closed bridging loan is usually around six months and an open bridging loan around 12 months.

There are usually penalties if you exceed the time scales.

Interest rates of open and closed bridge loans are 3.50% and 1.50%

Average exit times of Open & Closed Bridging Loans 12 months and six months

FIND A SPECIALIST

Whenever you opt for a bridging loan, please speak to someone who can guide you whether it's the right loan to take as there may be cheaper alternatives. We at Property Finance Partners can guide you on what is the best option.

Get a No Obligation Bridging Loan Quote Today
Call 020 3393 9277

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Know about Open Bridging Loans Vs Closed Bridging Loans

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The differences between an open and closed bridging loan and answering questions about the comparison between open and closed bridge loans so as to determine which option will be for you.

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Mezzanine Development Finance | Global Property Finance Partners Ltd

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Mezzanine Development Finance | Global Property Finance Partners Ltd

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Global Property Finance Partners Ltd provides structured mezzanine loans and development finance solutions for property developers and investors in the UK. Call today on 0203 393 9277. For more details, Visit their website!

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Mezzanine development finance or Mezzanine loan provides a second layer of debt finance (debt with a 2nd position lien also known as Junior Mortgages). It is provided to bridge the gap between the level of senior debt finance (typically going up to 60%) and the developer's or the investor's equity investment into the project or the purchase; a second charge usually secures it.

The Mezzanine piece size is typically between 20%-30% of the loan value. Mezzanine development finance reduces the burden on current cash flow and thus helps the project sponsor to manage his finance as well as his actual liquidity.
The Mezzanine loan takes up between 20%-30% of the financing that the borrower must have to realise his project.

For example:
A property developer wants to convert an office building with PD Rights to residential flats
The project is a profitable project with a gross development value (GDV) of £ 24,000,000
His total costs (purchase and development) are £ 20,000,000
A senior lender agrees to lend him only £ 12,250,000, 61.25% loan to cost (Ltc)
He then approaches a Mezzanine lender that will give him £ 4,750,000
The total loans that he has borrowed is equal to 85% loan to cost of the project
With a combined debt of £ 17,000,000, the developer needs only to contribute 15% of the total costs to realise the project. There are also other types of property finance that involve an equity piece, and then the combined loan can be up to 100% development finance, (100% loan to cost).

We at property finance partners analyse and present the whole picture to our client. We concentrate on the entire lifetime of the project from the beginning till the end and focus specifically on the timing that the finance is needed.

Also, the interest on the loan is tax-deductible therefore for instance:
If the interest of a mezzanine loan is 14% per annum and the standard corporate tax is 20%, so the real interest rate that we have to consider is 11.2% per annum.

The mezzanine loan is easier to manage. In most of the loan agreements the mezz piece can be paid or regularly or by rolling up to the loan balance and being paid at the end of the project after the capital loan, it reduces the burden of the ongoing cash flow during the project life.

It is important for the borrower to be able to make a professional comparison, among all the lenders that offer mezzanine loans.

Not all the mezzanine loans are the same and have the same conditions, however, above all there are issues like flexibility and customer service that you cannot measure them with numbers, but only from your personal experience.

We always provide our clients with a professional, honest and transparent opinion about each offer and an opinion about other issues that they cannot see in the numbers and the written offer.

There are cases that its worth to pay a slightly higher interest rate but to get a real strategic finance partner that will be beside you all the way until the successful completion of the project and afterwards for different projects in the future.
To find out how we can help, call today on 020 3393 9277

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Mezzanine Development Finance - Property Finance Partners

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Mezzanine development finance or Mezzanine loan provides a second layer of debt finance (debt with a 2nd position lien also known as Junior Mortgages). It is provided to bridge the gap between the level of senior debt finance (typically going up to 60%) and the developer's or the investor's equity investment into the project or the purchase; a second charge usually secures it.

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JV Property Development Finance | Global Property Finance Partners Ltd

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JV Property Development Finance | Global Property Finance Partners Ltd

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Global Property Finance Partners Ltd provides Joint Venture Property Development Finance for real estate developers. Get 100% finance through JV partners with a mixture of debt and equity loan. Call today on 020 3393 9277! For more details, Visit their website!

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A joint venture property development finance is a business arrangement between two or more parties that agree to combine some of their resources for a particular purpose. In the property sector, developers will typically join forces to compensate for aspects of their project they lack in, for instance, finance.

If a developer is unable to fund a potential project by himself, he will search an investor who can obtain the gap between his level of equity and the capital that is needed to realise the project or the investment.

There are different options for JV funding with various potential partners for a joint venture (JV) agreement, we at property finance partners structure and offer the right JV according to the interest and needs of our clients.

The potential partners for a JV vary and include Equity funds, Debt funds, and Real Estate funds, Finance firms, corporate or private investors, property developers, and Landlords.

Joint Venture Property Development

JV property development Option 1

A developer has secured a potential project to convert a big old house with a garden to flats.

The developer capital is deployed in other projects; therefore, he would like a JV Partner to provide most of the funding needed.

The projects gross development value (GDV) is £ 3,200,000

Total (purchase and development) project costs are £ 2,500,000

The developers' contribution to the deal (5%) £ 125,000

The Joint Venture partner (an investment firm) £ 2,775,000

The developer has secured a joint venture agreement the funds and can realize this project

JV property finance Option 2

A developer has secured land with planning in place (subject to S 106) to build a mix residential and commercial project.

The period of the project was 30 months to build and six more months to finish the wholesales.

The developer has made his financial calculations and appraisals and decided to find a Joint Venture property development finance Partner that can support him without any pressure and provide him with all the finance that he needs for the project.

The projects gross development value (GDV) is £ 38,200,000

Total (purchase and development) project costs are £ 28,500,000

The developers' contribution to the deal (full JV) £ 0

The JV partner (a Real Estate Investment Group- structure of 2 funds) £ 28,500,000

The developer has secured the funds and can realise this project by using a joint venture agreement.

Joint Venture partnership Option 3

A developer has bought land with planning in place (subject to S 106) to build a residential project.

The developer is interesting to build to rent, keeping the portfolio as PRS (Private rented sector) project

The period of the project was 24 months to build and 12 months to finish to rent 100% of the project.

The developer approached property finance partners, and we have made with him the financial appraisals and decided together to find a 100% development finance JV Partner with the same strategy to build to rent, keeping the portfolio as PRS (Private rented sector) project.

The JV partner shares the same strategy and can support the developer with the funding needed without any pressure.

The projects gross development value (GDV) is £ 59,000,000

Total (purchase and development) project costs are £ 43,500,000

The developers' contribution to the deal (full JV) £ 0

The JV partner (a Real estate fund-equity & debt) £ 43,500,000

The developer has secured the funds and can realize this project by using a joint venture agreement.

The fund strategy offers three exit possibilities

A) After five years- to buy out the developer.
B) To co-manage the assets for the long run.
C) To sell together to a pension fund.
There are different ways to structure the right JV.

To find out how we can assist you to find the right JV partner,

Call today on 020 3393 9277

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Joint Venture Property Development | JV partners | 100% Funding

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A joint venture property development finance is a business arrangement between two or more parties that agree to combine some of their resources for a particular purpose. In the property sector, developers will typically join forces to compensate for aspects of their project they lack in, for instance, finance.

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Residential Bridging Loans UK | Global Property Finance Partners Ltd

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Residential Bridging Loans UK | Global Property Finance Partners Ltd

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Looking to get a residential bridging Loan to buy a new home? Global Property Finance Partners Ltd can help you secure the best rates in the UK property loans market. Apply for your residential bridging loan today. Call on 020 3393 9277. For more details, Visit their website!

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Property investors and developers are familiar with bridging loans. Although many homeowners have heard of them, they typically are not sure how a bridging loan works or how to go about getting one.

We will break down briefly how a bridging loan works and how to qualify for this type of finance for residential purposes rather than commercial.
To qualify for a bridging loan, one would need a property with equity, which is used as security against the loan. Bridging loan lenders will lend up to 80% LTV on a residential bridging loan. One would also need to have an exit strategy. Book a FREE Advice Call With Our Property Expert
How Do They Work for Residential

Bridging loans are a fast straight forward option for equity-rich property owners, who require quick money in order to buy a new home. It could be the current home is not selling as quickly as you had hoped or you have found your desired home and need to buy it fast as not to lose it to another buyer.
RELATED: What are Bridging Loans and How do they Work?
You can take out a bridging loan up to 80% LTV of the equity value of your current property to purchase the new one, once the existing property is then sold you pay back the bridging loan. This is known as "bridging the gap" hence the name of the loan. It is also why the loan is considered short term as they are typically borrowed from 3 - 9 months.

Residential bridging loans are regulated by the FCA (Financial Conduct Authority), and the consumer has rights and protection.

RELATED: Regulated Bridging Loans

How do You Get a Bridging Loan

A bridging loan is a short term facility and has a fast application process that assists land and homeowners in moving from their current residence to their next home, due to the short term nature of the loan and the regulations involved high street banks do not offer this facility to consumers. They are more commonly provided by hard money lenders or private lenders who are ready to provide short term solutions to consumers.

You can search the internet to find a broker or a lender.

It is advisable to find a broker who can package the application process and compare the whole market to find the best rates and ensure your application is successful and save you time and money.
Equity Requirements
How to Qualify for Bridging Loan

Qualifying for a bridging loan is based on the prevailing equity within the owned property. Bridging loan lenders will typically lend up to 80% of the present equity value of the current property (LTV).

The scenario works well if you are looking to downsize and buy the new property in cash. But if the new property is more expensive, then the bridging loan can be used to put down as a down payment, requiring long term finance such as a standard mortgage.

The bridging loan can work well on either of those scenarios.

Exit Plan Requirements

An exit strategy will be required before a lender approves the loan. The exit strategy, in this case, will be the sale of the existing home to pay back the loan.

Is Income Required

Income is not required in all cases; if you have enough equity in the home, then income is not always required by the lender. This will also depend on what type of interest you are paying on the loan. If you are paying monthly interest, then you must have the income to pay that monthly debt. You can have the option by the lender to pay back all the interest at the end of the bridging loan term, this is known as rolled up or deferred interest.

Credit History
If the credit history is really bad you may get offered a lower loan to value and or higher interest rates. RELATED: Bridging Loan with Bad Credit Book a FREE Advice Call With Our Property Expert
From the lender's point of view, they are mainly interested in the equity within your secured property and your exit strategy. This does not mean they will not check your credit history, they most certainly will, and if it is terrible, they may dig deeper and scrutinise the case. If you have a small problem like you missed a credit card payment, it should not be a problem.

Property Finance Partners has years of experience in helping people with bridging loans, you can book a free advice call. You can also contact Property Finance Partners on 020 3393 9277

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Residential Bridging Loans UK | Property Finance Partners

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Property investors and developers are familiar with bridging loans. Although many homeowners have heard of them, they typically are not sure how a bridging loan works or how to go about getting one. We will break down briefly how a bridging loan works and how to qualify for this type of finance for residential purposes rather than commercial.

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Bridging Loans for Bad Credit | Global Property Finance Partners Ltd

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Bridging Loans for Bad Credit | Global Property Finance Partners Ltd

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Do you require a bridging loan and have a poor credit history? Contact Global Property Finance Partners Ltd. They can help you find the cheapest rates in the market. For more info, call 0203 393 9277. Visit their website today!

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Bridging Loans have continued to be the number one choice for individuals who are tight on cash, and the market has grown from £1b - £8b in just a decade.

Bridging loans can be an extremely viable solution to bridge the financial gap, and the best solution to ensure that individuals can complete their transaction as soon as they need. However, there are certain things need to be taken into account when applying for a bridging loan.
Have Bad Credit? Require a Bridging Loan? We Can Help. Call 020 3393 9277
BAD CREDIT IS NOT THE SOLE DETERMINING FACTOR

Poor Credit tends to be one of the most crucial aspects for obtaining traditional mortgages, predominantly because credit rating is an integral factor that mirrors the capability of the borrower to pay back the loan.

However, bridging loans work differently. In the majority of cases, the main factor to a lender is the security put up for a bridging loan.

A Bridging Loan is different from a standard mortgage, and therefore, credit rating comes secondary to any other relevant factor that is taken into account when applying for a Bridging Loan.

Let us teach you how to get a Bridging Loan, despite Poor Credit, or an average credit rating.

Firstly, you need to understand the rationale behind Credit Rating not being the primary determinant of attainment of Bridging Loans. As far as bridging loans are concerned, the most crucial factor is the security against the loan for the lender. The security will cover the loan, which is typically 70% - 75% of the value.

This means that the overall risk profile for bridging loans is considerably lower than that of other lending purposes, which include mortgages, bank loans, and credit cards.

EXIT STRATEGY

Additionally, Bridging Loans are mostly obtained with a clear-cut exit strategy that should be in place to reflect how the lender is going to receive their money back.

Therefore, in this case, it becomes quite significant to have a proper exit strategy, which can act as a guarantee for the lender, that their finances are secure, and they will be paid regardless.

The importance of having an attractive exit strategy is two-fold. Firstly, it shows that the borrower of the loan has a proper contingency plan in place in case of any unprecedented events that might deter the final payment in this regard.

Secondly, having an exit strategy is also helpful because it mirrors the overall capability of the borrower to plan resource distribution in an effective manner, which can make sure that the lender gets paid in full and on time.

Therefore, amidst the options that are available to the loan providers, the majority of bridging loan providers do not consider credit rating as an important factor.
Credit scores tend to be a small factor in the overall decision-making process.
NON-STATUS BRIDGING FINANCE FOR POOR CREDIT

However, in the case where an individual has a poor credit rating, because of which they are unable to obtain bridging loan finance, there is an option to opt for a non-status bridging loan.

Non-status bridging finance is the terminology that is used for a loan where the lender considers the property deal as the impetus for the loan.

This facilitates relatively fast funding, without the need for credit, the need for credit checks, or subsequent income verifications for loan approval.

CHOOSING A GUARANTOR TO FACILITATE THE LOAN

Alternatively, in the case where the credit rating is not at par, another option that is available to hopeful borrowers is to use a guarantor.

A guarantor is a third party member who signs on behalf of the borrower. This acts as a guarantee for the borrower to pay back.
The main advantage of a third person guarantor is the fact that it acts as a security blanket, for the investor, in the case where credit rating is not that favourable.
PLANNING YOUR STRATEGY

Another very useful strategy in this regard is to ensure that individuals and businesses can create a proper business plan beforehand, with the relevant paperwork that is required.

This can mainly be done by ensuring that the customers have a proper financial outlay, and framework in place, in addition to a contingency plan that can be used in lieu of justifying the amount to be loaned. This is in addition to illustrating a way regarding how the borrower intends to repay back the loan amount.

This financial outlay and analysis are helpful from the perspective of the investor because it gives them a certain sense of predictability and a financial trajectory of their investment.

BRIDGING LOAN ADVISOR AND BROKER TO HELP WITH BAD CREDIT ISSUES

Talking to a financial advisor in the case of adverse credit history is also a viable strategy that is used by individuals to prepare the paperwork and the relevant financial information that can be provided to the lenders.

In the same manner, interview preparation is also a useful technique, which might be used in order to establish proper communication channels with the investor, relating to how funding and financing can be arranged for better business outcomes.

Therefore, based on the perspectives that have been mentioned above, bridging loans can still be obtained despite a poor credit rating.

To check your credit score free with Experian

Do you require a bridging loan and have a poor credit history? We can help, call Property Finance Partners 020 3393 9277 We will find the cheapest rates in the market.

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Bridging Loans For Bad Credit | Property Finance Partners

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Bridging Loans have continued to be the number one choice for individuals who are tight on cash, and the market has grown from £1b - £8b in just a decade. Bridging loans can be an extremely viable solution to bridge the financial gap, and the best solution to ensure that individuals can complete their transaction as soon as they need.

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Bridging Loan for Property Development | Global Property Finance Partners Ltd

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Bridging Loan for Property Development | Global Property Finance Partners Ltd

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Are you looking to get a bridging loan for property development? Global Property Finance Partners Ltd offer some of the lowest rates in the UK property loans market. For more info, call 0203 393 9277. Visit their website today!

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When you have to develop your property, some form of financing is required, and this is why so many people seek the help of bridging finance.

Bridging loans for property development are excellent for property developers as they are not only helpful, but you can also get them pretty quickly. In many cases, you don't have too much time to wait around for funding, so development finance comes as a saviour.

If you're dealing with a home development project and you're planning to take a bridging loan for property development, here is what you need to know about this loan.
Require a Bridging Loan for Property Development? Get a No-Obligation Quote Today
How Does Bridging Finance for Property Development Work?

Development finance is used when a customer who's into property development needs quick funding. People use it to finish a project that is in development, after which the customer can repay it once capital is generated after the development value.

A bridging loan for property development can be used by the borrower for multiple types of development projects. For example, someone can use it to purchase land with planning permission and start off a project that hasn't yet developed.

They might also use it to change or renovate parts of the project that don't benefit from a mortgage. In other words, it's a very flexible type of financing. Most bridging lenders are experienced with developments.

How Can You Get Property Development Finance?

In general, bridging loans for property development are not always offered directly by institutions that work with the public.

Instead, you will have to apply through a broker to get the best deals. Property development finance itself will then be offered by either a specialist lender or certain banks.

To be eligible for this form of short-term finance, you must have a property that you can secure to the loan. You need to guarantee lenders that you will be able to repay the bridging finance on the term.

If you don't do that, they could take your property and recover their losses. Many customers usually secure this financing against the site they're developing.

Nevertheless, you may also choose to do it with separate property, in case you own one. The advantage with the latter is that you will be able to borrow a bigger amount, while the rates will be more convenient.

The Fees (How Much Does a Bridging Finance Cost)

Fees will also be charged when you're going through the process of borrowing. For example, the first fee you will have to pay is the arrangement one. It is usually no more than 1%-2% of the capital, and you will pay it when you receive the loan.

Of course, interest rates will apply as well. They vary from a person to another and a series of aspects are influencing the percentage. Expect to pay interest from 0.40% to 1.5% monthly dependant on the information, build and project.

Typically, they are either rolled up and you can pay them at the end of the loan term, or you'll have to deal with monthly charging. But interest rates for bridging loans are not the lowest you're going to find as they are short term finance. Although you have a chance to get some good deals depending on your situation.

To get the best rates, you need to have good credit, a healthy deposit, a good exit strategy and, ultimately, experience in the property development area.

Likewise, depending on who your lender is, you might have to pay an exit fee. Where it applies, it is typically about 1%-2% of the capital. Keep in mind that you will have to communicate an exit strategy when applying.

If you're a property developer, it normally means you will either refinance with a residential or sell the developing property or an existing one. It is crucial for the lender to know what to expect once the term comes to an end.

Get a No Obligation Bridging Loan Quote Today

Call 020 3393 9277

What Do You Need to Get Development Finance?

There are two things that lenders may require from you when you apply for bridging finance for property development, depending on the situation.

* Business Plan (Appraisal)

If you are planning to develop a property for commercial purposes, such as a shop under a flat, a hotel or anything of the sort, you will need an appraisal and any documents such as planning permission, proof of land purchase etc.

Basically, when it comes to such developments, the lenders will want to be sure that your investment has to do with business, so they take no risk by offering you money. Typically, a specialist lender will have to deal with the case when it comes to businesses.

* Income

Income is not always necessary. However, a lender might want to know what you are going to do to fund the renovation works. You might plan on making renovations and selling the property you're funding, but how are you going to do it with no income?

If you have enough equity to use when purchasing property without financing, then proof of income may not be necessary. But if your exit strategy involves remortgaging, you will have to show proof.

* Security

You will need to make sure you have enough security to cover the loan amount in order to complete the project.

What Are the Pros of Bridging Finance for Property Development?

* It Can Be Used for Multiple Property Types

One of the most crucial things regarding bridging financing is the property you're going to secure to the loan. The good thing is that you can use these loans to buy all kinds of properties, such as shops, apartments, houses, and the list can go on.
* Fast Bridging Loans
Time is of the essence for property developers, which is why a fast way of funding will always be preferred. Bridging loans are quick, so you will have access to the necessary money sooner than you think. Not to mention that this is a short-term loan, which offers quick access to the funds.

* Flexibility

While usual lenders ask you for a lot of details upon granting you a loan, bridging lenders want to know more about the property you secure the loan with. Also, the repayment can be set in such a way that it is favourable to you during the one-year term.

Regulated vs Unregulated

Regulated bridging loans offer further protection by the Financial Conduct Authority (FCA), bridge loans that are secured against the borrower's or his immediate family's residential property. Bridging loans authorised and regulated by the Financial Authority are for a maximum of 12 months.

An unregulated bridge loan is secured against any commercial assets and the terms can be extended to 18 months. It is not authorised and regulated by the financial conduct authority.

Open Vs Closed Bridging Loans

A closed bridging loan has a clear and specific exit strategy and time period. this type of loan is to be repaid at a specific time. A lender prefers to provide this form of product as it carries less risk.

Open bridging finance does not have a specified time to repay the finance but they are still often no longer than 12 months but are open to being extended. This form of bridging is available but carries more risk to the lender and they are typically more expensive given the risks involved.

An Example of Borrowing Bridging Finance for Property Development

An experienced property developer & investor with a good track record has a viable development project building flats and is looking to borrow £300,000 bridging finance to secure land without planning permission.

His plan is to get planning permission on the land and to secure development finance to repay the bridge and secure funds for the build to complete the project.

After advice and discussing his options with a broker on the lending criteria, the borrower provided the necessary information and a number of assets as security, the borrower managed to obtain the right amount of cash with reasonable costs via an open bridging loan. After which he obtained planning in 9 months, the borrower than secured regular development finance and repaid the bridging.

This is a typical scenario to obtaining a bridging for a developing project, the borrower was not sure exactly how long the planning would take so an open bridging loan was his option.
See more examples
Final Thoughts

Development finance UK is a great way for property developers to continue and complete their project if they don't have the necessary money to do so. Before you apply, make sure to consult with property finance expert on your options.

The expert will tell you how to become eligible for the loan, and how to apply. It is important to keep up repayments on the term finance or you will be at risk to lose your purchase as well as your security and may be repossessed.

If you would like to apply for a bridging loan for property development, please complete the form below or contact us on 0203 393 9277 or email [email protected]

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Bridging Loan For Property Development | Property Finance Partners

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When you have to develop your property, some form of financing is required, and this is why so many people seek the help of bridging finance. Bridging loans for property development are excellent for property developers as they are not only helpful, but you can also get them pretty quickly.

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Property Development Finance & Bridging Loan Brokers

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Property Development Finance & Bridging Loan Brokers

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Global Property Finance Partners Ltd works with property development finance & bridging loan brokers to provide some of the lowest rates in the UK property loans market. For more information, please call on 020 33939277. Visit their website today!

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As market leaders and a property finance expert, with global and national sources of real estate funding. We develop and value our relationships with introducers we work with on a regular basis.

We are also keen to build and grow to our network of introducers.

We are always happy to reward introducers upon the successful conclusion of a transaction.

Why work with us? Because we are deal makers with a "can do it" approach and from the reasons below!

1. Unbeatable excellent results-orientated customer service.
2. Global sources of institutional equity and debt funding.- Fast, Flexible, Reliable
3. We shall always treat everyone with respect, transparency and honesty.
4. Competitive commission payments with bonuses and special reward schemes.
5. An additional high income for the long run.
6. We'll take the hassle out of finding the right property finance solution for your client.

Feel free to contact us to find out more information.

Email: [email protected]

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Property Development Finance & Bridging Loan Brokers

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As market leaders and a property finance expert, with global and national sources of real estate funding. We develop and value our relationships with introducers we work with on a regular basis. We are also keen to build and grow to our network of introducers.

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Second Charge Bridging Loans | Global Property Finance Partners Ltd

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Second Charge Bridging Loans | Global Property Finance Partners Ltd

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Know about second charge bridging loans and how to obtain the best rates in the UK market. Discuss your bridging loan options today with Global Property Finance Partners Ltd, call on 020 3393 9277. Visit their website today!

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When someone owns a property that already has a mortgage, things can get daunting when the owners require more funds to improve their property.
"Let's talk about 2nd Charge Bridging Loans".
A first charge loan must have not been enough to cover all costs for the house, so the person in charge of the property is left with an incomplete home.

But there are other options to overcome this issue, such as a second charge bridging loan. The loan may be possible as long as the applicant is eligible to obtain it. Here is what you need to know about 2 nd charge bridging loans and the process of getting one.
Need a Second Charge Bridging Loan? Get a no Obligation Quote Today
What Is a Second Charge Bridging Loan?

A second charge bridging loan is a secured loan where short-term lending is being given towards property that was already secured with a "first charge".

If you have a property that needs improvements, or you need an extension or loft conversion, getting a 2 nd charge bridging loan can assist with your needs. It can increase the necessary money for the operation for up to 12 months.

How Can You Apply for a 2nd Charge Bridging Loan

Applying for a 2 nd charge bridging loan is not that difficult. First of all, you need to make sure you are eligible for obtaining it. The first thing that makes you eligible is owning a property which can be used as security by the lender.

As mentioned, these loans are secured ones. This means that the lender wants to rest assured they won't be left without the money you owe if you don't pay.

Usually, the asset a lender asks for is property, which will cover the borrowed costs in the event you don't repay it.

Also, when a property already has a mortgage, it will be the mortgage company that will have the first charge.

Another thing an applicant needs when applying is a good credit score. Credit scores serve as proof that the borrower is reliable, thus able to pay off the loan in time.

If your credit rating is not exemplary, then you will struggle to get approval for your loan application. Concurrently, a second charge bridging loan normally doesn't have the best rates.

But the credit rating point can be optional, in certain situations. If you are able to make a good exit plan, then you can find a deal that your credit score won't be able to ruin.

In case you apply for a loan for property development reasons, then you need to have experience in this field. Of course, this is something that will have to be proven if you want better chances to obtain the second charge bridging loan in the first place.

To apply, you also have to provide the necessary documentation. Such documents may involve proof of being the owner of the property, an application form, and proof of ID.

Learn about getting bridging loans with bad credit

What Does Having a Good Security Property Mean?

A good security property is a property that is sure to get enough money to pay for the debt once the end of the term approaches. Considering you're taking out a secured loan, the lender doesn't want to take any risks if you'll be unable to return the amount by the end of the term.

The property you offer should be available for re-mortgaging or selling, and you will have to provide proof of that.

How Long Will It Take to Obtain a 2nd Charge Bridging Loan?

The amount of time it takes to receive the loan normally depends. Usually, you will have to wait around up to 10 days to obtain it. Nevertheless, sometimes you can get it much sooner, such as in 48 hours, when you really need fast bridging loans. In that kind of situation, you will have to pay for the privilege.

Are There Any Fees with the Loan?

There are usually fees associated with a second charge bridging loan. When you apply for the loan, the arrangement fees can be 2% of the loan amount. In addition, there will also be an interest which could be around 0.85% on a monthly basis.

Second Charge bridging loans are generally more expensive than a first charge.

How Much Can You Borrow?

There is not one universal amount of money that everyone gets upon applying for 2 nd charge bridging loans. It all depends on multiple aspects, such as the LTV percentage and the equity your property has obtained.

The bridging loan will be calculated according to your equity and the LTV. LTV is usually around 70%-75% for a 2 nd charge bridging loan.

What Are the Advantages of a Second Charge Bridging Loan?

2 nd charge bridge loans are so convenient simply because of their versatility. On average, they are used for specific acts such as improving a property. Nevertheless, they can also apply to construction projects that haven't even started yet, refurbishment, and the list can go on.

An advantage of second charge bridging loans is the time-saving aspect. Unlike other financing options that keep you waiting a lot more, the arrangements for second bridge charges can go by pretty fast. Lenders make sure to deliver the funds as quick as possible, which attracts more people and is ultimately beneficial to the lender.

There might be few exceptions to this aspect, but as a rule of thumb, there are usually no fees for an exit. A lender makes money through the arrangement fees and interest rate, without punishing an early-payment borrower.

Final Thoughts

Before applying for bridging loans for house purchase, it's advisable to seek the help of a financial advisor who will tell you what you must do. By doing so, you'll get qualified help in getting the loan that will suit your needs.

Obtaining a second charge bridging loan can be achieved as long as you meet the requirements and have proper documentation to prove yourself. So, do you wish to apply for one? Make sure to have all the eligible traits, and you may be able to obtain the funds you need in completing your house buying process.
Apply Now 020 3393 9277 or email [email protected] Why Choose Property Finance Partners
✓ lowest rates in the UK.

✓ Latest Interest rate from 0.28% per month

✓ second charge loans from 5.99% per annum

✓ Borrow up to 80% LTV

✓ Borrow from £20,000 - £1 Billion.

✓ Whole Market Access

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Second Charge Bridging Loans | Property Finance Partners

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When someone owns a property that already has a mortgage, things can get daunting when the owners require more funds to improve their property. "Let's talk about 2nd Charge Bridging Loans". A first charge loan must have not been enough to cover all costs for the house, so the person in charge of the property is left with an incomplete home.

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Property Development Finance UK | Global Property Finance Partners Ltd

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Property Development Finance UK | Global Property Finance Partners Ltd

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Are you looking for property development finance or bridging loans in UK? Global Property Finance Partners Ltd provide expert advice & development finance solutions, call on 020 3393 9277. Visit their website today!

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Property Development finance is used by real estate developers to fund a variety of building projects, conversion projects or renovations of real estate. It is secured by a first legal charge against the project.

A development finance lender will usually lend against the value of the land plus (most or all) the build costs.

The central figure that the lender would like to know is the Gross Development Value (The value of the finished project) also known as GDV. The funds are released in stages (monthly or quarterly) following the project progress.

Get a no Obligation Development Finance Quote Today

Almost all types of property developments can be classified under the finance for property development umbrella; it includes the new build of residential projects, commercial projects, Mixed used, hotels, offices, industrial parks, care homes and care villages, holiday homes, houses, flats and more. It also includes all types of refurbishments, conversions, PRS and PD rights.

The financing is determined on the gross development value. More specifically, what matters is the worth of the site after the refurbishment or building project is over. Hence, property developers and real estate developers oftentimes choose this type of financing in order to cover the costs associated with such projects.

For more information on property development finance contact Property Finance Partners on 020 3393 9277

How Does Property Development Finance Work

A property development loan is usually for a short-term period. It's usually between 12-36 months.
The lenders supervise on the project with (usually) a QS report on the project progress. The development loan is repaid to the lender at the end of the project. Either by selling out or refinancing with an investment facility.

The developer finances the land purchase price. Concurrently, the lender supplies either all or part of the remaining construction costs. It's also worth noting that the money is usually released in stages, depending on the progress of the project. Afterwards, the lender makes staged payments according to the pre-agreed intervals. In this way, all the costs associated with the project per se are covered.

The lenders calculate a development finance property facility as a percentage of the gross development value of the finished project (the GDV) as well as, as a share of the costs, the lower between them.

Usually, a monitoring surveyor should indicate that the scheduled works proceed according to a plan. There are also certain standards worth considering.

When it comes to the standard terms for finance property development, they can vary. That's basically because each scenario has its own specifications. Plus, different development finance lenders provide different offers. However, the duration of the loan might be between six and twenty-four months.

Plus, property development finance is interest-only, as the interest is accumulated into the loan.

That is to say, during the term of the loan, you don't have to worry about making scheduled repayments. When it comes to exiting the loan, there is the option of selling the property.

Many developers worry about the interest of this type of financing. The truth is that so many factors affect this. For one thing, certain development finance lenders are more flexible in this respect. Others might be more rigid - it varies quite a lot. Also, the financial contribution of the developer to the project matters. The same could be said about his/her former experience in the world of development.

It's as simple as this: the more an investor can contribute to the project, and the more experience one has in the domain, the more convenient the interest rate will be. Collaborating with professionals who have excellent credentials is a sensible strategy as well.

Who Would Benefit

The people that usually choose this form of financing, this could be a viable choice for builders and developers by profession. So, if one intends to build a home from scratch and sell it afterwards, this form of financing might facilitate the needed financial resources for completing the project. And of course, there is the most typical scenario - that of an experienced developer who needs money to build homes or apartments in order to resell it and secure an excellent rate of return.

Usually, the maximum sum of money you can borrow will depend on the lender you're collaborating with. Most of the times, this is up to 60 percent of the purchase price, although here at Property Finance Partners we can go as much as 85%. At the same time, the type of project also matters. The lender is mostly concerned about the Gross Development Value of the finished project - also referred to as GDV. After the financing application is approved, the money is released monthly or quarterly as the project advances.

How to Raise Finance for Property Development

In comparison with traditional property investment, development finance in the UK comes with significant financial rewards and, most notably, flexibility. It is a type of financing that is short-term, as its duration can range from 12 to 36 months. Concurrently, it entails that the lender takes on the responsibility of supervising the project. At the end of the conversion or refurbishing project, the loan is repaid.

In respect to the rates of development loans, these will vary depending on the experience level of the applicant, the region and the project.

Raising Development Finance

When raising finance for property development, it is advisable to take things one step at a time. Although starting small might not seem like the right approach to generate significant returns, it might actually be a good idea, especially in the beginning. That's because this diminishes the risk. On the other hand, this might seem restricting, which is why another option worth noting might be collaborating with a private investor.

For experienced developers there are are many options to raise the development finance required, structuring the right finance for your project is key to saving you time and money. Property Finance Partners has the knowledge and expertise to get you the right finance at the best deal by working with whole market of development finance institutions. Talk to one of our advisors for more information.

Calculating Development Loan Requirements

The size of the development loan needed by the sponsor is calculated according to the actual costs of the project. The costs include the purchase of the land with all the expenses like stamp duty, legal and others, build costs together with any other associated costs until the project is finished.

In a development finance facility the funds will be released by stages (monthly or quarterly) following the project progress.

The development finance facility is also used to support most of the PRS schemes
PRS Finance - Private rented sector
PRS- Build to rent expression is employed in the UK when people want to describe the private building to rent out.

The properties are owned by private landlords who can be companies or individuals.
We at property finance partners work closely with real estate funds and alternative lenders and that offer high LTV as well as JV partnership and equity investments in different PRS projects all over the UK.

It is advisable to use a development finance calculator to understand all the costs.

To find out how we can help you to raise development finance for your PRS project, call Property Finance Partners (development finance broker) today on 020 3393 9277

Development Finance for PD Right Projects

The development finance facility is also used to fund most of the PD schemes
PD Finance - Permitted development rights
The plan that is called PDR permitted development rights enables to change and convert office buildings to residential units without applying for planning permission in some cases.

We at property finance partners work closely with real estate funds and alternative lenders and that offer high LTV as well as JV partnership and equity investments in different PRS projects all over the UK.

100% Development Finance - Key Information

100% of property finance -When it comes to the UK marketplace, Property Finance Partners has the ability to raise 100% value of the land to 100 percent of the total cost of the build. Discussing this with our advisors is always recommendable.

One hundred percent development finance usually involves a mixture of debt finance and equity partner, this way a Joint venture collaboration is set between the borrower and the equity lender, with a share of the profits.

When it comes to development finance, although there are many rewards that come with completing a project, there are also some risks.

Many novice property developers have made rash decisions without fully comprehending the potential risks. For one thing, it's fundamental to be 100 percent straight when discussing with a lender. Instead of trying to make an application more appealing to the lender to increase the chance of success, being upfront and straightforward is the best policy.

When pursuing 100% development finance, one should have realistic expectations regarding the profit. Factoring in the market conditions in which the project will be finalised is highly recommendable as well. Are there any changes likely to occur after the completion of the project?

The lender and JV partner want to be sure that the property developer has the experience and know how. The feasibility of the project is also an important part of the application process.

You need to be prepared with factual, accurate information including the duration of the project, the results you plan to accomplish, the money needed in this respect, so on and so forth.

As soon as you've proven that your project is worth the investment and the time in respect to profit margin and viability, you also need to supply thoughtful, comprehensive plans.

Click here for more information on 100% development finance.

Case Studies

Case Study Development of Holiday Apartments

A developer in London is looking for a development finance facility to build a project of eight-holiday apartments. (Most of the lenders don't like to lend for development of holiday homes)

Property finance partners finance solution
The owners approached us and we restructured for them the whole deal including the land purchase timing with the best development finance rates.

Summary
This projects gross development value or (GDV) is £ 3,350,000 Total (purchase and development) project costs are £ 1,675,000 The finance facility offer £ 1,300,000 the developers' contribution to the deal £ 375,000

Case Study PD Rights Development

A developer has bought an option for building with PD Rights (to convert offices to flats). The time period of the project 20 months to convert and 4 more months to complete the sales.

The developer has made his financial calculations and appraisals and decided to find a JV Partner that can support him without any pressure and provide him with all the finance that he needs for the project.

Property finance partners solution
We have approached a real estate fund which shares the same strategy and can support the developer with the funding needed without any pressure.

Summary
The projects gross development value (GDV) is £ 38,200,000 Total (purchase and development) project costs are £ 28,500,000 The developers' contribution to the deal (except drawings, option purchase and pre-deal expenses) £ 0 The JV partner (a Real Estate investment Group-structure of 2 funds) £ 28,500,000
The developer can realise this project by using a joint venture agreement with the fund.

Case Study of Development Finance without Planning

A developer in London has bought land, without planning and achieved the planning (subject to S 106) to build a residential project.

The developer is interesting to build 50% for sale and the rest 50% build to rent, keeping 50% of the portfolio as a PRS (Private rented sector) project. The time period of the project was 24 months to build and 12 months to stabilise to project sales and rentals.

Property finance partners solution
The developer has arrived at property finance partners and we have structured the financial appraisals and decided together to find one lender based in London that can support him in both of the phases of the project.

The development finance rates were very attractive to the borrower.

Summary
The projects gross development value (GDV) is £ 59,000,000 Land Value £ 16,800,000 Total (purchase and development) project costs are £ 43,500,000

The Lender development finance loan (a Real Estate finance institution) £ 26,700,000
The developer can realise this project by using a development finance facility in stages according to the project progress.

Require Development Finance: London based broker with over 100 years of combined experience. Property Finance Partners.

Case Study: Further Growth for a Landlord

A landlord that is also a developer approached us to assist and structure his finance and raise finance for growth. We analysed his current portfolio, the value, the debt, the annual yields, the locations and the whole financial situation of him and of his companies.

The average annual yield from his personal portfolio 5.3%. The average annual yield from his company's' portfolio 7.9% Total value of his portfolio £ 37,000,000

Property finance partners solution
Based on our knowledge and working relationship with different funds. We have built for him a road map, how to continue to grow by using his existing portfolio. As well as, finding "the right" new potential developments (with our guides and advisory) that will fit exactly the financial institutions lending requirements and criteria.

Summary
The Landlord will grow his portfolio with our structures of financial debt as an equity loan in addition to a pure development facility.

To find out how we can help you to raise finance for your PD project, call today on 020 3393 9277

To learn about a bridging loan for property development read more
Or learn about bridging loans in general

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Low Rates of Development Finance UK | Property Finance Partners

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Property Development finance is used by real estate developers to fund a variety of building projects, conversion projects or renovations of real estate. It is secured by a first legal charge against the project. A development finance lender will usually lend against the value of the land plus (most or all) the build costs.

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Bridging Loans London UK | Global Property Finance Partners Ltd

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Bridging Loans London UK | Global Property Finance Partners Ltd

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Global Property Finance Partners Ltd provides quick bridging loans, bridging finance solutions in London, UK for a range of properties. Apply for your bridging loan today on 020 3393 9277. Visit their website today!

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A Bridging loan is short term finance borrowed to bridge the gap between one's cash flow needs and completing a property deal. They are typically acquired from 6 to 12 months in length until replaced by long term finance such as a mortgage, sale of your property or another viable exit route. Get a No Obligation Bridging Loan Quote Today or Call 020 3393 9277 Book a FREE Advice Call With Our Property Expert ✓ lowest rates in the UK ✓ Latest Interest rate from 0.28% per month ✓ second charge loans from 5.99% per annum ✓ Borrow up to 80% LTV ✓ Borrow from £20,000 - £1 Billion ✓ Whole Market Access Call 020 3393 9277
HOW LONG DOES IT TAKE FOR THE APPLICATION?

One of the most significant advantages of the loan is the speed in which the borrower can access the capital from the bridging lender. In certain instances, a deal can be structured within hours if the borrower has the correct information at hand, but in most cases, it takes between 2 to 4 weeks. When quick finance is needed to buy property, they are the perfect solution.
CONTENTS
BRIDGING LOANS EXPLAINED

BRIDGING LOAN MORTGAGE - Initially designed for those that need to complete a purchase of a new property before selling the one that they currently own.

Therefore, they can use the loan to pay for the new house purchase, thus giving them time to complete the sale on the existing property to repay the loan. This is known as "bridge the gap".

ARE THEY A GOOD IDEA?
Bridging loans are much faster compared to a standard mortgage, so are a good idea and the preferred method for those that need immediate access to capital. Lenders generally do not take into consideration personal circumstances or poor credit issues. They mainly merit an application on the security provided against the loan, such as a property. It is advisable to seek professional advice before taking such a risky debt. As long as the asset offered for security has enough equity, lenders will be comfortable with providing a property bridging loan to individuals in the United Kingdom.
Important: A lender typically has the first charge on your property - which means that if you default on the loan, the lender has the right to repossess it or force a sale.

During the length of the short term loan, just like with standard property mortgages, you must pay an interest fee for the loan term.

Bridging loans carry a monthly interest rate rather than an annual one.

Sometimes this will be paid to the lender at the start but more often than not it will be rolled or deferred and repaid at the end of the loan term.

The amount you can borrow from the bridging lender will be determined by the value of the property secured against the loan. After verification, you may be able to borrow up to 80% Loan to Value (LTV) with some lenders.

BAD CREDIT - Obtaining bridging loans with bad credit is not uncommon as the determining factor will be the secured property. Learn more
Book a FREE Advice Call With Our Property Expert
WHAT CAN THEY BE USED FOR?

Buying property at an auction

Property Development

Renovating & Refurbishing

Buying a new home

Businesses requiring Cash Flow

Financing Repossessions

Buying a derelict or uninhabitable properties

COMPARING THEM TO A HOME MORTGAGE

REGULATED BY THE (FCA) OR UNREGULATED LOANS

(FCA) regulates the financial services industry in the UK

There are specific differences between regulated and unregulated bridging loans.

They are 'unregulated' unless secured against the borrower's or his family's property in which case it is regulated by the financial conduct authority (The FCA)

If the borrower is to secure the loan against his or his immediate family's property of residence, it is an authorised and therefore a regulated bridging loan which carries further protection by the FCA through the MCOB (Mortgage code of business) rules.

Regulated bridging finance gives individuals protection from the brokers and unexpected miss-selling incidents. Protecting consumers and ensuring the integrity of the UK financial system.

FEATURES OF REGULATED

The borrower gets a maximum of 12-months to repay the Loan.

Rather than monthly, the interest options remain rolled up throughout the whole process.

When taken for commercial purposes are always unregulated. The FCA has no involvement in this area of the market place.

The exit route has the option of either selling the property or making a refinance. (Only options that most of the lenders allow).

1. Buying land for property development

2. If an individual has funding works to a property.

3. A company can secure residential, commercial and Semi-commercial property in a quick period of time.

4. Purchasing a property at an auction.

5. Buying a property to sell at a profit.

6. Buying a property to make improvements for profitable resale or conversion to a buy to let.

FEATURES OF UNREGULATED

SOME EXAMPLES OF UNREGULATED

TYPES OF BRIDGING FINANCE

When choosing, there are two types to consider: closed or open bridge loans. Let's look at the differences.

An open bridge loan may be borrowed without the sale of your existing home (when there is no clear exit strategy).

The interest rate is higher.

A lower loan to value borrowing is offered.

The borrowing term is generally longer and can stretch up to 18 months.

An open loan is less preferred by the lender due to the higher risks.

CLOSED LOANS
Learn more about open and closed
OPEN LOANS

You may want to discuss your options with the lender beforehand to avoid any risks.

Pro Tip: When you take out a bridging loan, you can choose options to pay the interest. You can pay the interest a month at a time - or you may go for paying the whole interest when you repay the loan. A bridging lender in the UK will typically have you paying the interest first-hand, but this will all depend on who you are collaborating with".

When it comes to bridging finance, you may generally borrow no more than 80% of the value of the property secured. Furthermore, the house that you want to lay as security will be first charged by the lender.

Pros & Cons of Bridging Loans

2nd charge will result in borrowing a lower amount of loan to value (LTV), and the lender conducts more checks and scrutiny.

THE PROS AND CONS

Interest is quite competitive in the current market and getting a monthly rate as low as 0.45% is not uncommon, giving the borrower a viable option to borrow.

If you choose the option of a retained interest bridging loan, then you won't need to pay the interest until the end of the loan term-an ideal solution for those who may be short on cash.

They come with different options of paying the interest, such as monthly, deferred, rolled up or retained.

They are overall very flexible, and you may get extensions if needed.

If you manage to pay the loan amount off early, you can save on the interest.

When it comes to a loan bridging, there are specific pros and cons that you might want to check and understand.

They may be more expensive when compared to your average mortgage. You could be paying 1.5% or even higher monthly; if you compare that to a standard mortgage at 5.5% per annum, it works out quite high.

Extra fees involved such as broker fees, arrangement fee of typically 1%, legal and valuation fees and in some cases exit fees.

Failure to repay the loan can put your property at risk for repossession.

Not everyone will be able to qualify for bridging finance. You will need quite a substantial amount of equity for your loan to be considered.

The longer you take to sell the house, the bigger your debt will be.

Interest payments are high. It is wise to pay the loan off quickly to save you money, dragging on with the payments CAN cost you a lot.

THE PROS:

THE CONS:

Pro Tip: "Make sure that you conduct all the research necessary when it comes to taking out a bridging loan Think about whether the pros outweigh the cons or not - and only after that should you make your application".

THE TIMESCALES

Perhaps the most beneficial aspect of this type of finance is that it is a short term loan generally around 3 - 12 months.

Some may be provided for as short as two weeks if needed, whereas others can go on for as long as 18 months. This gives you enough time to sell your existing house to repay the loan.

On average, most people who get these types of short-term loans will set a term length of 10 months.

An advantage of bridging loans is that you do not have any penalties if you repay early.

Interest rates on Bridging Loans

The table below gives an indication on the amount you would be paying monthly and in total on £250,000 with 0.80% monthly interest. Showing different time scales.

HOW MUCH DOES IT COST (INTEREST RATES AND FEES)

On average, the costs have higher monthly interest fees compared to your standard mortgage - but they will also differ from one lender to another. The monthly interest rate revolves around 0.40%-1.5% - an open bridging loan cost is likely to be higher.

It may look inexpensive, but they are more expensive than traditional mortgages. It is due to the fact mortgages work at a yearly rate, whereas bridging loans cost have monthly interest rates.

You should always ask the lender for the loan interest rates, so that you may have an idea of the difference compared to a mortgage.

Ideally, you should also be using a bridging loan calculator so you can take into account all the costs since it will allow you to paint a better picture of the final amount. Bear in mind that if you use a broker, it may incur an extra brokerage fee.

The annual interest of bridging loans with UK rates can be 10% or more, which is quite considerable when compared with the 3%-5% that you generally find on the average mortgage.

The interest can be charged per month or rolled up to pay the interest balance at the end of the term.

You should also look out for any extra fees and costs that might be imposed on you, such as exit fees and other similar payment fees. Also if it is possible, calculate all the fees beforehand to be organised.

The table below gives an idea on a monthly payment from borrowing of £250,000 with various monthly interest rates.

OTHER COSTS TO TAKE INTO CONSIDERATION

Arrangement Fee - When you take out bridging finance for a property you must be aware that an arrangement fee is incurred, typically this is with 1-month interest.

Exit Fee - In some cases, there may be an exit fee of 1% also

Valuation Fees - In order for the lender to determine the value of your property they will get an evaluation conducted by their approved valuer and you must pay the bill. On a property of £500,000 it will cost about £750.

Legal Fees - You must pay all of the legal fees. This depends on the firm you use, but you will also pay the lenders legal fees.

Facility fee - An administration fee is also added to the total bridging loan amount.

Searching comparison sites may help in saving fees involved.

It is important to keep up repayments otherwise a penalty can be charged. This could include higher interest rates.

LOANS FOR PROPERTY DEVELOPMENT

They are an ideal solution for property developers, as they do not have to reside in the property and are able to sell the property quickly afterwards.

For more information on Bridging Loans for Development

GET ACCESS TO CAPITAL FAST

You will gain access to the funds quickly, and it will provide you with the money you need for property development or renovation project.

They are an ideal solution for property developers, as they do not have to reside in the property and are able to sell the property quickly afterwards.

Make sure that you are raising enough capital - and ensure that you do so at the appropriate time. Sometimes, borrowing "off-season" might cause you to go through delays when selling the house, which can result in adding on your interest amount on your loan.
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Planning your finances and development project is essential if you do not want the costs to get out of control. Make sure that everything is happening at the right speed - and that things are going according to plan.

3 Examples on Bridging Loans

If you are interested in 100% Development Finance for projects, please see our other products for property finance.

REAL LIFE BRIDGING LOAN EXAMPLES

EXAMPLE ONE: LOAN SECURED FOR 3 FLATS

A property developer in London was looking to raise funds to complete conversion of ownership to 3 flats.

But he was unable to get a loan from the mainstream lender because he had another loan (with a charge) on the property.

The tailored solution for the developer was a bridging loan with a second charge that bridged the gap between his first loan to his actual financial needs. This assisted him in finishing the project.

The loan was without exit fees or ERC's (early repayment charges)

The borrower will complete his development. Then he will have the possibility to sell the properties or to keep and refinance with a buy to let mortgage.

EXAMPLE 2: OFF MARKET PROPERTY SECURED

A property limited company registered in England was looking to buy an office building in an off-market deal; they chose to pay a none refundable payment for a month.

Therefore they had to act and move very fast in order to raise funds quickly to not lose the property and their deposit.

Their regular financial institution couldn't move at the speed that they needed. They thought that they were going to lose the deal and the deposit.

The tailored solution for the property business was a bridge loan with a second charge that assisted the company in getting the credit in the time frame required.

The company was able to finalise the deal, whilst taking 8 months to refinance with a buy to let loan. The finance facility was with no exit fees and without early repayment charges (ERC's).

EXAMPLE 3: INVESTOR COMPLETES AN AUCTION PURCHASE WITH A SHORT TERM MONEY LOAN

The property investor needed £570,000 to complete an auction property purchase and his time frame to finish was less than three weeks.

The tailored solution for the property company was bridging finance with a second charge loan and a reasonable monthly interest fee. The property loan had no hidden fees

The investor got the finance for 7 months from the lender for the property within nine days with a reasonable monthly loan rate after the lender got the valuation report.

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CONCLUSION

Bridging loans are quite a convenient option for those who need quick access to a significant amount of cash to invest in property they want to buy.

In the past, this kind of finance was only available through long-term mortgages, but when you need the money for a short period, then a bridge loan should undoubtedly be the right option for you.

For more information, guide and advice and the best bridging options or alternatives, contact Property Finance Partners Call 020 3393 9277

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Bridging Loans London UK | Property Finance Partners

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A Bridging loan is short term finance borrowed to bridge the gap between one's cash flow needs and completing a property deal. They are typically acquired from 6 to 12 months in length until replaced by long term finance such as a mortgage, sale of your property or another viable exit route.

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Global Property Finance Partners Ltd provide bridging loans & development finance solutions for real estate developers and investors in the UK property loans market. Get 100% property finance for projects. Visit their website today!

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Property Finance Partners is a pan European results-orientated structured property finance company. The team is based in London and has over 100 years of combined experience within the property finance business, property development finance, bridging loans and advisory sectors.
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Our team maintains deep relationships at the highest levels of financial institutions such as Pension Funds, Equity Funds, real estate funds, Insurance Companies, banks ַַ& Investments banks, Special Pan-European, American and Middle Eastern Funds, Private money funds, Mezzanine lenders and bridging loan finance institutions.

These long term relationships enable us fast access to different types of capital, including equity, debt and the right tailor-made combination between them. We are structuring capital property finance deals from £50,000 to £500 million+ from pre-planning to completion.

As property development finance experts, we are obligated to fulfil the highest standards; therefore, we can provide you with a finance solution for your property projects or deals, fast, transparent and tailor-made, precisely for your requirements.

For us, every client is unique, and each case is different; therefore, we discuss and learn your particular needs. Thus to create an individual tailor-made finance solution, that suits your requirements at the time you need it whether that be a bridging loan, debt finance, equity, JV or a mixture of different finance facilities.

Property Finance Partners from their London office continuously updates the client throughout the process and negotiate with the lenders the best possible conditions. We are independent and represent only your interests; therefore, we approach only the lenders that suit your case.

Our in-depth finance industry knowledge and long term relations enable us to secure exclusive property finance that cannot be obtained elsewhere.

Get a No Obligation Quote Today or Call 020 3393 9277

Why Property Finance Partners

✓ Unbeatable results-orientated customer service

✓ Global sources of institutional equity and debt funding

✓ Ability to create Equity & JV Partnership between Real Estate Funds and Landlords, developers\builders and investors

✓ In-depth knowledge of Structure Debt as an Equity piece (100% Finance Ltc- Senior rates)

✓ Have access to unsecured capital for the property sector ( big tickets)

✓ Global access to a wide range of lenders. - Ability to secure funding from throughout the UK, Europe, the Middle East and North America.

✓ We have developed deep working relations with some of the largest funding sources throughout the world, some exclusively to offer them in the UK.

✓ We shall always treat everyone with respect, transparency and honesty.

✓ Our relationships with the lenders are based on trust. Therefore, we know exactly whom to approach, when to approach and how to approach.

We Are Proud Of Providing Five-Star Customer Service

Our Team Of Property Finance Experts
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Unbeatable customer service is our priority; we work with each client to build deep business relationships with a member of our team, not as a number to be tossed around.

You will have a member of our team working from the beginning through your projects, and you will be able to contact him at any point. You will not be passed around to any other member of our team, guaranteed.

Between us, we have over 100 years of experience in property development and finance.

Our understanding of property finance is unmatched, and you will be dealing with an expert who will understand the ins and outs of your projects and be able to guide you throughout your project developments progress.

What Type Of Property Finance & Development Loans?
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✔ Senior loan

✔ Stretch Senior finance

✔ Mezzanine Finance

✔ Preferred Equity

✔ Equity Finance

✔ J.V Equity

✔ J.V Equity and Debt

✔ Development Finance

✔ Bridging Loans & Short term loans

✔ Mixed Residential & commercial finance

✔ Real estate Equity and debt

✔ Buy to Let Finance

✔ Build to Let finance

✔ Pre Development Finance

✔ Acquisition finance

We can arrange and secure real estate funding from 500,000 pounds to 500 Million pounds+ for all types of property developments from residential to commercial from conversion to new builds and much more, as long as your project is property-based. We might have the finance solutions for you.

We accommodate the funding to your exact requirements; we are fast, flexible and can structure the financing in a variety of different formats which fit your projects exactly as you need.

Property Finance Partners know to advise you about the improvement of your property business and how you can do things better and more profitable in the bottom line. We don't consider ourselves as property brokers but rather property finance experts who can advise on all aspects of your real estate funding needs.

Our motto is simple; "your success is our success."

What Is Property Development Finance?
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Property Development finance is used by real estate developers to fund a variety of building projects, conversion projects or renovations of real estate.

It is typically secured by a first legal charge against the project. A lender will usually lend against the value of the land plus (most or all) the build costs.

The central figure that the lender would like to know is the Gross Development Value (The value of the finished project), also known as GDV. The funds will be released by stages (monthly or quarterly) following the project progress.

100% Loan To Cost: Property, Development And Investment Finance
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Mainstream lenders, including the banks, will stop lending at 55% - 60% loan to value and only take low-risk with financing development projects.

We at property finance partners have the ability and access to funding sources which can offer competitive property development and investment finance facilities to the property developers. We are familiar with the finance institutions requirements, and we can structure even debt as an equity piece (100% Finance Ltc - Senior rates) obviously for the right company.

There are different ways to build, structure and present a loan application; therefore, we work closely with our clients to achieve the best finance facility that fits their needs.

Why wait weeks or months for a decision on your projects, we can get you a decision in principle within days after gathering all the information required and for future loans even faster once the relationship has been built up. So if you need finance quickly, then Property Finance Partners is the company to contact.

Who Can Benefit From Property Development Finance?
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Among all the property finance types that we arrange and have access to, Property Development Finance is our speciality.

Here at Property Finance Partners, we can arrange and secure anywhere from 500,000 Pounds to 500 Million Pounds+; in fact, there is no maximum amount.

The development loans which we structure are unique in the sense that we take the time that is needed to listen and understand your needs, your requirements and your wishes for your existing projects as well as for future opportunities.

Above it, we work with developers for the long run learning their needs and requirements in the present and the future and assist them in realising more projects from their pipeline to support them to grow and fulfil their vision. Some of the projects we obtain capital and monies to include:

✔ Residential projects

✔ Commercial real estate finance

✔ Property Investment

✔ Industrial finance

✔ Student accommodation funding

✔ HMO finance

✔ Care homes funding

✔ Property conversions

✔ Refurbishment

✔ Restoration projects

✔ New Builds

✔ Property expansion capital and finance

✔ Unusual development finance

✔ Private Rental Sector

✔ Real Estate Private Equity

✔ Permit Development Rights

✔ Refinance

✔ Buy to Let

✔ Portfolio purchasing finance

✔ Plots and Land funding (with or without planning permission)

✔ Equity or Debt or both of them

✔ 100% development finance available

✔ Joint venture funding

The more ambitious the client is, the more we want to meet and work with you, we have the in-depth knowledge of the global and national lending market inside out and understand how it works.

It enables us to help your property business to increase at the shortest time. If your property business is unable to grow to the next level because of lack of funding at the right time, then call us today and let's discuss how we can assist and work together.

Our process is efficient and fast, with over 100 years of combined experience in property development finance, business and real estate advisory we are considered the premier property finance company in the UK and Europe.

Call Today on 020 3393 9277

Bridging Loans Knowledge Base:
To get started you can request a property loan using our online funding form here and we will get back to you within 24 hours.
FAQ Bridging Loans
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Bridging Loans & Development Finance London | Bridging Loans UK

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Property Finance Partners is a pan European results-orientated structured property finance company. The team is based in London and has over 100 years of combined experience within the property finance business, property development finance, bridging loans and advisory sectors.Read More Our team maintains deep relationships at the highest levels of financial institutions such as Pension Funds, Equity Funds, real estate funds, Insurance Companies, banks ַַ& Investments banks, Special Pan-European, American and Middle Eastern Funds, Private money funds, Mezzanine lenders and bridging loan finance institutions.