Property Investor Hunting Licence

A Property Investor Hunting Licence is a new type of Bridging Loan designed to make property deals faster and easier. You can think of it as a line of credit for buying property.

A Property Investor Hunting Licence is a flexible and pre-agreed facility. It is secured against an existing property portfolio and means that you have a pre-agreed line of credit to borrow against when you want to act quickly to secure a new property purchase. 

It gives you easy access to funds as you need them, allowing you to move fast and buy properties before refinancing to cheaper mortgage funding for the longer term.

As a Property Hunting Licence is a type of Bridging Loan secured against your existing assets, the lender is not taking security over the new property you want to buy. This means:

• You can buy properties that may otherwise be difficult to borrow against
• You can secure deals very quickly
• You can turn properties around rapidly increasing your opportunities for profit
• You can buy below market

How does it work?

A Property Hunting Licence is secured against your existing portfolio. We can arrange up to 70% of the open market value of your property holdings on a first charge basis, or 60% on a second charge basis. A standard offering would provide facilities up to £1,000,000, although we may be able to increase this level of funding if you can demonstrate sufficiently with strong security.

It lets you move fast. As the security for this sort of facility is your existing portfolio or even a single property with sufficient equity, there is not even any need to complete a valuation report on a new property. As your facility will be already agreed and ready to draw down, it is perfectly possible to complete a purchase in under a week - although you may need to ensure that the full legal process and other checks can be completed to protect yourself.

A Property Hunting Licence allows you to purchase properties that are below value, extend and refurbish, or even buy properties that are currently unmortgageable. This helps you to add value to your portfolio and you only pay for the money when it is drawn down. Many investors are using this method to build their portfolios fast - and avoiding the need to save up a new deposit for each new property.

What will Property Investor Hunting Licence cost?

Like all Bridging Loans, the cost of Property Investor Hunting Licence may appear high, but only charged when you draw down funds that you actually use. As funds are designed for short-term ‘hunting’ activity and to be replaced with long-term funding, such a mortgage or other loan secured on the property, you may find that the costs are actually highly competitive - especially compared with other types of short-term funding. 

You will only ever be charged standing Bridging Loan rates, regardless of both the condition of the property you are looking to purchase and the works you plan on doing to it. In fact, as you will not need pay arrangement fees, using a Property Investor Hunting Licence can work out much cheaper than traditional Bridging Loans.

As a new and innovative product designed for experienced property professionals, it is important that you understand all the charges involved.

At Rangewell, our team includes experts in funding for property, and we will be happy to explain exactly how a Property Investor Hunting Licence can work for you.

To find out more about Property Investor Hunting Licence and whether it could provide the facility to help you build your wealth, simply talk to us today.