Real Estate Bridging Finance is of two types:

1. Status Real Estate Bridging Finance: Borrower profile and his credit profile is also an essential factor.  So all documentation is required about the borrower.

2. Non-Status Real Estate Bridging Finance: Assets based (Collateral) finance for quick financing. Borrower profile is ignored.  Non-Status Finance is a little more expensive than the status of Finance because of higher risk factors.

The following is the standard list of documents required for bridging finance for the Status-Bridging Finance 

• KYC: ID, Address proof, Personal & Professional Profile, Credit Report for all the Borrower, Director, Partners & Major Shareholders
• SPV Structure: Directors, Shareholders, UBO, and the registered address ( UK or offshore)
• Money Laundering Documents: Assets & Liability Statements, Income & Expenditures Statements, Equity (deposit) proof
• Income proof (may be required): Last 3-year accounts/tax return, 3 Month Bank Statements (Personal & Business)
• Collateral: Full descriptions, brochure, valuation report (if available), tenancy schedule (if applicable)
• Purpose of finance:  Purchase, Refinance, Restructure, Investments, Developments, Business purpose, Refurbishments
• Exit Strategy Proof: Some satisfactory proof/explanation about the loan to pay off?

How much Real Estate bridging loan can I borrow?

You can borrow up to 75% against the single asset and up to 100% with the additional asset (1^st charge or 2^nd Charge)

Do I need an Income to get the Real Estate bridging Loan?

Not necessarily as the loan will usually be for a specific purpose to plug a short term capital requirement with the release of capital from the sale of an asset being the means of repayment, income requirements do not exist in the same way as they do for mortgages and other loans.

Will I have to make a monthly payment for the Real Estate bridging loan?

No, with almost all bridging loans you will only be required to make a payment when you close off the loan. The interest will be added to the loan each month, so the longer you hold the loan the more interest you will pay.

How to use the Real Estate bridging loan?

It can be used for any legal purpose such as ‘quick purchase, finance restructuring, debt consolidation, repossession stopped or any legal debt settlement”.

Can my Adverse credit affect the Real Estate bridging loan?

The non-Status bridging loan does not take into consideration your income & credit profile.

Lending decisions as the repayment mechanism will be the sale of an asset.

Is my home at risk, if I do not keep my repayment on time?

A non-regulated bridging loan is on investment property only. Your house is usually safe even for any non-repayments of the bridging loan because the lender recovers the loan from the sale of the investment property.

The following costs should be considered at the time of availing the Real Estate Bridging Finance:

• Arrangement Fee: The arrangement fee or the facility fee, is usually charged by the lender as a set-up fee for the loan. This is added to the loan.
• Exit Fee: The fee is payable to the lender when repaying the loan. This is paid on completion of the loan.
• Broker Fees: These are the fees payable to the Broker for finding the best lenders and managing the application to completion. This is added to the loan.
• Valuation Fees: This is the fee that has to be paid to the valuer, who shall be instructed by the lender to furnish a report on the collateral/project. This is paid upfront.
• Legal Fee: Usually, the borrower would have to pay the legal fee for their own solicitors as well as the lender’s solicitors fee. This is paid upfront.

We always aim to bespoke the ‘Financing Time Plan and Finance T & C, to meet the individual requirement. Our standard indicative timeframe :

• Initial Finance Terms: We usually provide Initial Finance Terms within 3 hours.
• Emergency Finance:  We can complete the finance within 48 hours in case of any emergency or distressing situation.
• Standard Finance:   We usually complete Standard Finance within 3-4 weeks.

Notes: Financing time frame & Finance T &C are always subject to providing all satisfactory documentation, full credit underwriting,  valuation and legal.

Please refer to the Knowledge Bank section for more information