Bridging Finance

Wealth ManagementBridging Finance is a short-term loan secured against any type of property or land on an interest-only basis.

You can have a Bridging Loan for 1 day or 1 year.

A bridging loan can be made to an individual or a limited company.

The Bridging Finance market is proving increasingly popular with our clients for a number of reasons.

Below are a few examples of how Bridging Finance can be used.

Speed – A typical Bridging Loan through Fortress Capital will complete, on average, in 5–8 working days. Having access to finance in this timeframe can be particularly useful to property developers who have the opportunity to secure a great deal if they can complete quickly.

Auction purchases – Bridging Loans are popular with individuals who purchase properties at auction and have to complete within 28 days. The speed of Bridging Loans is the perfect solution for clients who are unable to complete on traditional finance in the required timeframe.

Broken property chain – A client wants to purchase a new property but is still in the process of selling their existing residence. A Bridging Loan enables them to secure the new property before the sale of their existing property goes through. The Bridging Loan can be secured against the new property being purchased or any other properties owned by the borrower. In some instances, 100% of borrowing can be raised to secure our client their new property.

Uninhabitable properties – Traditional lenders, especially on buy-to-let mortgages, will often not lend on a property if there is no kitchen, bathroom, central heating or running water, i.e. if it is considered uninhabitable. A Bridging Lender, by contrast, will base its lending on the property’s value in its current condition and therefore allow a client to get access to a property and make it habitable. Once habitable, the property can then either be sold or a buy-to-let mortgage can be secured to pay off the Bridging Finance.

Property development – Property investors may wish to renovate a property in a few months and subsequently sell or refinance; this can include complex structural changes to a property or light refurbishments. Part-complete projects can also be purchased with bridging finance. In summary, a ‘bridge’ can often be the perfect vehicle for this short-term capital requirement.

Gain planning permission – Bridging against land or property in order to obtain planning and secure development funding, or sell on with the uplift in value.

Lease extensions – Where a property has a short lease and cannot be financed traditionally, bridging can be used to extend the lease, making the property mortgage-able through more conventional sources.

For more information or to arrange a face to face meeting with one of our advisers, please complete the contact form on the right, or email or call Ashley Reading on +44 7803 120408