Because time is often of the essence when it comes to property development, you may need bridging development finance for your project.
Bridging loans are short term funding options used to ‘bridge’ a gap between a financial obligation and your client’s available funds. Bridging loans can have negative associations of being extremely expensive—however, this is no longer necessarily the case. Enness has a team in place who understand a bridge is often the best financial solution for entrepreneurs and strategic investors, who would otherwise risk missing out.
So how can you use a bridging loan for development projects?
Bridging finance can be extremely useful for developers. For example, bridging finance is useful for property developers who need short term, immediate finance in order to stretch their borrowing ability. It is also useful for refurbishments; naturally, most developers are seeking to add plenty of value to their property—but they may need short-term finance in order to complete renovations or improvements.
One of the key appeals of bridging finance is that it is typically very quick to put into place, as there is less regulation around this type of finance. This is extremely beneficial for developers who need to move quickly.
We have a proven track record of helping developers secure bridging finance for their projects in a timely and efficient manner. For example, we recently helped a developer with a bridging loan of £1million, which allowed him to complete simultaneously on the sale of his old property and the purchase of his new property. In this instance, we had an offer out for him in 3 working days—with more advantageous terms than another broker had offered him.
Bridging finance can often be helpful for developers when something unexpected occurs. Enness has previously arranged a bridging loan for a client who was developing a very valuable property in North London. Ten days before completion, his funder pulled out—and we therefore needed to arrange a bridging loan to prevent this developer from losing out on a potentially very profitable scheme.
Enness is able to work with you to refinance your bridging loan when the time is right, meaning you’re never left paying more than you need to. If you need to secure bridging finance for a development project, we’d be delighted to discuss this with you further.