Property Bridging Loans
What do you need -
Hello ! I’m David Farrell, the owner of Quest Finance Ltd. Not sure which finance type you need ? Let me help you, here’s a quick outline:
- Bridging Loans, are typically used for: purchasing a property undervalue, supporting auction bids with fast finance, funding the build of single or 2 storey extensions to houses.
- Development Finance, tends to be more for larger developments eg Full new house builds from a single property through to builders building 200+ houses on larger building sites , or converting an old pub or office block into 12 flats etc
Let me help you ;
- Understand – Which is right for you ?
- Get all the figures correct – so the lenders lend
- Get a working cashflow forecast that lenders will love
- Present the best case to lenders – so you get your funding
The easiest way is to request a callback or call me direct and we can discuss your case and I can see what fits your circumstances the best.
I look forward to helping you
Quest Finance Ltd
- Cashflow Worksheet
FREE Cashflow & Build costs MS excel worksheet.
This is the same one we use to construct the detailed cashflow and determine the schedule of payments required.
Bridging loans & Development Loans
Bridging loans are often used in property transactions, typical main uses of a bridge loan:
- Purchase property undervalue
- Buy property that needs renovation before being mortgageable
- Convert property from commercial to residential eg convert an old pub into 4 x flats
- Break property chains, when you’re still waiting to sell your old property and dont wish to lose the onward purchase.
- Help fund property extensions, eg single or double story house extensions.
- Fast finance to support Auction Purchases
When a Bridging loan is used for larger property development eg the building of a house from ground up, or building of several houses, then rather than being called bridging finance its more often called a Development loan or Development finance.
Need a quick quote on a Bridging loan?
Rates and lenders criteria vary widely, depending upon the circumstances and if the loan s classed as regulated finance ( for the property you live in / intend to live in ) or unregulated ie a property that is just being improved for commercial gain.
Just get in touch with what you need the bridging loan for and how much finance is needed and for how long, and we can normally quote you initial terms within 24 hrs
Bridge Loan – Do you have a building project that needs some finance? Whether your project is a one off new build, large extension or loft conversion, we can HELP YOU get the finance you need.
We can help you with;
- Getting a lender in place that WILL lend
- Planning out cash-flow
- Ensuring you get the right funds at the right time
- Handling all the finance paperwork.
Help finding 100% property development finance
We can arrange finance that suit you and your business from our large panel of lenders.
- Same day decision in principle
- Upto 18 months terms
- Upto 100% development finance
- We can help structure the finance / cashflow
- Residential development finance or commercial
We can compare development finance lenders, to ensure we get the right property development finance lenders that will lend on your specific project, as some have regional areas they will / will not lend on. So for eg if you need development finance in Manchester, Bristol, Leeds or Birmingham etc we can search for lenders that will lend in that area. Many also have minimum property development finance loan amounts. Meaning that searching blind can take you days if not weeks. Let us help you find the right house building loan for you.
Property bridge loan
we compare bridge loan lenders – leaving you to do the bit you are really good at – building !
”Can I get 100% funding?” Yes you can.
We have lenders that will fund 100% of the purchase price and 100% of the development, lenders would like some additional security to be able to offer that. In simple terms the lenders want you to have ‘some skin in the game’. If you have nothing to lose, its easy for you to walk away, and they do not want a half built housing site in the west midlands ! They want you to have the drive to succeed and make the projected profits.
Most builders don’t actually need 100% finance, as often they either already own the land or can get a deferred payment option put in place. In these cases you get 100% funding of the build costs.
Interest amounts charged on these property development and house builder loans is typically retained by the lender until the construction project completion. At that time, the amount of the loan is paid back by the borrower plus the accrued interest. This means that the borrower doesn’t have to make monthly payments on a loan. Most developers and builders agree that making monthly repayments can be both inconvenient and difficult. This is mainly because cash flow rates can be nearly impossible to predict during the property construction period. Many lenders also prefer to receive a full, one-time repayment of a loan for funding build costs when building is completed.
Since property development loans are short-term loans, lenders have no problem with retaining interest charges until project completion. These loans are commonly issued for a time period equaling 6 to 18 months. Simple property renovations may require only three months to finalise
100% bridging loans
100% bridging loans are available with extra security eg your own or another property that a comfort charge can be placed on
”I’m new to this can i still get it ?” Yes – It is often used by experienced builders financing the development for a new build site, but equally its used by homeowners, or builders new into the property building market. Eg you might have been a builder doing extensions and renovations, and want to break into doing your own new builds
”What will I need ?” – Ideally we would like people to either be able to put in 50% of the initial site purchase cost themselves. Or you can negotiate with the landowner for a deferred purchase, whereby you pay him out of the profits at the end.
Ideally no major bad credit eg Bankruptcy, IVA’s or ccjs in the last 2 years, although this is non status lending the lender will still want to know you are a good overall risk.
We can help structure the deal to be acceptable and also guide you to who WILL lend to you based on the proposed development and your background.
Bridge loan with Previous Bad credit ?
”I have previous bad credit – can i still get it ?” – We arrange finance for businesses in all situations. We can even arrange finance for business where the directors are previously bankrupt, as long as they have been discharged for 2 years +
Unlike residential mortgage finance, construction finance is not credit scored.
Dealing with these lenders, we get to know, what each one typically likes to lend on, what development projects they would fund 100% and if your a homeowner seeking self build then who will lend regulated development finance, as not all lenders can lend on regulated finance deals.
We care & are here to help you !
If you have a project and need help building the case for finance, let us help you – OK you might be great at building houses, but finance structuring, cash flow forecasting and form filling ! – might not be your strong areas.
On property development - What is 'Exit finance' ?
For the vast bulk of properties the exit route for development finance is the sale of the properties once built. It can be common for a few properties to be ‘still left over’ awaiting a buyer at the end of the project. This can frustrate the builder as often a large proportion of the profit is tied up in the last half dozen buildings. That is where you might need to use a development finance exit route . Quite simply if the properties are residential houses, we can help put in place temporary BTL mortgages, thus releasing 75% to 80% of the property equity, meaning the builder can use those monies to fund their next development. so if you need a development finance exit route sorting, just get in touch !
If you need a development finance exit route for commercial properties, then we can look to source a suitable commercial finance deal to enable the release of equity.
Property Bridging Loans
Bridging loan Lenders
We work with a wide range of development finance lenders that lend across England and Wales.
We are very keen to work with Builders seeking construction development finance in; London, Bristol, Birmingham, Hereford, Gloucester, Aylesbury, Oxford, Luton, St Albans, Cheltenham,Worcester, Reading, Bournemouth, Poole, and Exeter