If you’re in need of a short term loan to finance a conveyancing project, bridging could prove to be a valuable funding tool and we have the legal expertise to make it happen.
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You’ve found the perfect property and need to get things sorted quickly! Bridging Finance could be the best way to achieve your goal.
Bridging is a highly specialised area and therefore it is vital that you have the best in the business helping you along to make the whole process as simple and as straightforward as it can be.
A bridging loan, or short-term loan as it is often known, is a method of refinancing a property or financing the purchase of a property for a short period of time, typically until the buyer receives an anticipated inflow of cash such as the sale of their existing property.
In other words, this short term secured loan ‘bridges the gap’ until the buyer is in a position to finance the purchase in a more standardised manner (e.g. with a standard mortgage).
When would I take out a Bridging Loan?
For the right client, in the right circumstances, bridging can be a valuable funding tool. There are many situations where bridging could offer a suitable alternative.
Short term loans are used for a number of reasons. These range from conventional bridging, which is where a homeowner wishes to purchase a new home but is unable to sell their current property, to auction finance or business loans.
Short term loans are generally suited to borrowers who want money quicker than can be obtained from mainstream lenders such as banks and building societies, or where they will not lend due to the current state of the property e.g. where it needs a kitchen or bathroom installed to make it habitable, or due to their underwriting criteria.
As the name implies, the loans are only suited to those who need the money for a short time. They are not suitable as a replacement for long term finance. The most important aspect of taking out a short term loan is making sure you can repay it by the due date.
Lynne is a licenced conveyancer with over 20 years’ experience. Since joining the company as a Fee Earner in 2005 Lynne quickly became a Manager and then in 2012 became Head of Property.