Bridging Loans

Berkeley Private Wealth was established in 2015, based in Berkeley Square in Mayfair, Central London since it's inception, we have been dedicated to bridging loan finance from the beginning, as high net worth brokers we help our clients secure bridging loans and other property related finance. Whether you are looking for a small loan for property refurbishment or a much larger loan to complete a deal within a matter of days or weeks, we can assist. We have built a reputation on completing on time critical transactions and have become the number one choice with high net worth individuals and successful businesses looking to seize opportunities and complete deals with very tight deadlines. Our expertise within this area as specialist brokers ensures that regardless of the complexity of the situations our clients find themselves in, we will get the best rates on bridging loans available to them in the most time efficient manner. Fundamentally, we offer clear, straightforward, fast financing options for our clients utalising our network of lenders and private financiers, we operate on a global scale, funding projects internationally. We can secure fast financing options on properties of any construction type or property condition. We also assist our clients in arranging a suitable exit strategy to pay off bridging loans, utalising a cost effective long term funding solution.
We have access to a comprehensive range of lenders covering the whole markets, not just banks, building societies and property funds but also specialist niche lenders, peer to peer lenders, private and institutional investors. Partnerships and funding lines with over 250 banks, private funds, family office and institutions, many of whom are not available directly to borrowers. Lender preference to deal with reputable intermediaries with whom they already have a relationship. We have been securing loans for our clients for many years and therefore have built and developed extensive relationships with senior underwriters and decision makers to ensure our clients loan requests are handled with extreme care and attention, in a timely manner. Bridging loans from £25,000 to £50 million +. We specialise in obtaining fast bridging loans using our network of private lender, family office and private banks, we can potentially secure bridging funding in a matter of hours rather than weeks depending on the circumstances. Due to our direct contacts with senior underwriters and decision makers, we have the ability to tailor each bridging loan to the unique requirements of our clients, therefore none of our bridging loan arrangements are a standard product. The higher level of contacts we have within institutions ensures that we understand our lenders varying risk appetites and therefore can identify the lenders most suited to our clients circumstances.
Care Home Bridging
A care home is similar in many aspects to HMOs in that there are multiple tenants with their own individual contracts, which ensures a more reliable source of income; care homes are unlikely to fall completely void at any time, as tenants are singular and the letting of the property is not to a group. This ensures that care homes are a potentially lucrative opportunity for owners with the right experience and expertise. When managed effectively care homes are very profitable businesses. 
 
The fundamental difference between HMOs and care homes is the requirement to provide a high level of care to tenants. There has to be a sufficient number of trained staff and therefore start-up costs are high. It is important to source a flexible and affordable funding solution before proceeding with the purchase or refinancing of a nursing home and therefore bridging finance presents an ideal solution for new and existing care home owners where time is critical. 
New owners who are looking to set up a care home or take on a going concern can put together the necessary capital in a relatively short space of time. Speed is important, but where bridging finance really shines is in the flexibility of the packages on offer, most bridging lenders will allow borrowers to “roll up” interest until the end of the loan term. This means that there is no monthly bill to be paid and no ongoing drain on the bottom line, as long as the loan can be repaid in full at the end of the term then the borrower need make no other contributions. The option to defer loan payments for a year or longer is highly attractive. Many nursing homes will use bridging finance as a temporary solution to get the ball rolling and will seek out a traditional longer term financing during the term. This will usually be the method through which the borrower repays the bridging loan and any associated expenses referred to as the exit strategy. Like all bridging and secured loans, finance used to pay for a care home will be secured against the property itself. This allows the lender to provide a higher level of funding. However, a care home is a unique combination of property and commercial investment - the home itself is not the most valuable part of the business. 
Care home bridging loans like all other secured loans will also be assessed on the value and condition of the property itself. This is the fundamental asset acting as security. The lenders will conduct thorough valuations of the property’s likely sale value. This process is usually completed quickly and bridging lenders often pride themselves on being able to make funds available in a week or two.
Buy to Let (BTL) & Bridge to Let
There are many situations where a mortgage is not available to a client, the issue could be the time it takes to secure a mortgage which is usually several months. In such circumstances, a bridging loan may be an alternate source of funding. Bridging loans are a much more flexible way to finance a property purchase and can be used to quickly secure property that would otherwise be unobtainable. If a property is sold at auction, or the seller needs to move quickly in order to pay off debts of their own, it can be necessary to close a sale within a few weeks. Mortgage lenders simply cannot work to this timescale, so a bridging loan must be sought instead; bridging lenders work to an exceptionally fast timescale and are often able to provide funds within a matter of days. Properties that are not in a habitable condition cannot be mortgaged. Therefore any house in need of renovation must be secured through alternative funding, rather than through a mortgage, so any clients looking to buy a house, fix it up and let it out must turn to bridging finance instead. Many bridging lenders will provide loan packages to purchase and refurbish a buy to let property.
Non-Status Bridging Loans
These type of bridging loans concentrate entirely on the application of the loan itself and not on any extraneous circumstances. This fundamentally means that the lender will look at the security asset on which they are being asked to lend on and the clients reason for the loan. Lenders will not look at their income in order to assess whether or not to proceed with the loan. This is essential for those who have little regular income from their portfolio but still wish to expand into new investment opportunities. It is also crucial for those who are new to the industry with no established track records such as a new property investor, new care home owner or new property developer.
Chain-Breaking Bridging Loan
One of the biggest disadvantage of being caught in a property chain is the inability to purchase at your own schedule. Your mortgage is tied up in your current home, therefore purchasing another is dependent; you have to wait until your own buyer purchases your property before you can repay one mortgage and take out another. More often then not, your buyer is often waiting on another buyer to complete, so being in a property chain is a waiting game. By breaking the property chain, a buyer is able to secure the purchase of a property even if they’ve yet to sell their own. This can be vital if their ideal property has come to market.
Bridging Loans Used For
  • Property Purchases and Refinance including Capital Raising
  • Auctions Finance
  • Buy to Let (BTL) / Bridge to Let
  • BTL Refurbishments (light, medium & heavy)
  • Care Homes, Hotels, HMOs, Holiday Lets
  • Freehold & Leasehold Extensions
  • Non-Status Bridging Loans
  • High Value Property Bridging
  • Castles & Listed Buildings
  • Chain Breaking Bridging
  • 1st, 2nd & 3rd Charge Bridging Loans
  • Commercial Loans
  • BMV Bridging - Bridging finance for below market value properties
  • Fast Property Purchase
  • Buying Before Selling
  • Property Developments
  • Inheritance Tax / Probate / Divorce / Large Bill Bridging
Bridging loans are short-term interim financing options that are usually less than 12 months, backed by some form of collateral. They are utalised by companies to solidify their short-term position until a long-term financing option is arranged or until the company removes the existing obligation. It allows businesses to meet current obligations by providing immediate cash-flow. The rates of interest are often based on the loan amount and the amount of risk to the lender. Bridging loans are often used by borrowers as a supporting form of finance that precedes a longer-term form of funding. Bridging Loan interest rates are generally higher than commercial mortgages, to offset the risks to lenders.
Mainly used by property developers, businesses, landlords and investors. These types of loans are required in circumstances where time is of the essence. We understand the urgency for our clients and therefore have a direct diligent approach, our applications are bespoke to our clients individual needs whilst ensuring that the lender has peace of mind with the proposal. Utalising our specialist network we ensure that our clients individually tailored applications reach the right lender the first time round for fast bridging finance. We have direct contacts with key decision makers and senior underwriters and therefore have successfully completed on complex bridging requirements for clients who were turned down by others.
Peer to Peer Property Bridging
One of the few major innovations within fin-tech to establish itself as a viable option. Peer to peer funding is rapidly becoming a real alternative to traditional funding. Abbreviated as P2P lending and also known as crowdfunding. Peer to peer loans are funded by hundreds of individuals contributing a very small percentage unlike traditional loans. Tracking and apportioning the many different loans would be impossible without highly sophisticated financial technology. One of the biggest advantages to borrowers of bridging loans is that Peer to Peer loan requests can be approved exceptionally quickly; with funds often available within a week. This is only possible due to the fully digitised nature of Peer to Peer lending, as well as the manner in which loans are funded; the majority of Peer to Peer platforms automatically apportion investor’s funds from a pool, therefore loans can be funded quickly and easily. 
Short Lease Bridging Finance
Properties with a short term lease, time is of the essence as each year adds more to the cost of extension. Bridging loans are therefore ideally suited to this purpose due to being high-value, short-term secured loans. What makes bridging loans useful in such circumstances is that they can be secured on assets that mortgages can’t be; such as properties with a short lease. This means that clients looking to purchase a lease extension can quickly and easily secure the funding they require to begin the leasehold renewal process. The most common use of a short lease bridging loans is in purchasing properties which cannot be mortgaged. In such circumstances, bridging loans go from application to approval within 24 hours, the funds following shortly afterwards. The bridging loan itself will in most cases cover both the purchase of the property itself and the cost of renewing the leasehold; the client then complete the lease extension process and attains a mainstream mortgage to exit the bridging loan.
Below Market Value (BMV) Bridging & Discount Purchases
Speed of transactions and adaptability to changing situations is essential for those looking to make a profit, bridging loans can enable purchases at discount prices. Due to their versatility, bridging loans can fulfill a wide variety of needs, and therefore are an ideal solution for many different problems. They can be used to complete discounted purchases in a very short time frame. Mainstream and traditional funding lenders are wary of lending on properties where there is disparity between the valuation and the purchase price. In such circumstances, obtaining a property for less than what they think it is worth, sets off red flags from a mainstream lending perspective. From our experience, properties are offered at a discounted price because they need to be sold off quickly for many reasons, short leases, disposal of properties by sellers to release essential capital for time critical projects etc. A fast, flexible alternative to the mainstream and traditional lenders is therefore required, which is where BMV bridging loans and discount purchase finance come in.
Fast Property Purchase
Completing a property purchase quickly can be highly valuable to many buyers. Bridging loans can offer the ideal solution for a quick purchase. The flexibility of fast bridging finance makes it an appealing choice for professionals in many different fields and the various applications to which it can be put make it an appealing solution. Some of the most common clients for fast purchase loans are property developers, care home, hotel and HMO owners who need a quick way of starting projects.

Office Tel: 0207 129 1112

Email: enquiry@berkeleypw.com

Address: 23, Berkeley Square, Mayfair, London, W1J 6HE

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Berkeley Private Wealth Ltd is registered in England and Wales. Company number: 9600893. Registered office: 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ.

Berkeley Private Wealth (Berkeley Private Wealth Ltd) is not licensed or regulated by the Financial Conduct Authority and does not provide financial advice. All lending is strictly for business purposes, some forms of buy to let, commercial finance and overseas finance. Terms and conditions apply.

 

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