High-Value Bridging Loans
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Scaled For Your Needs
- No upper limit on lending
- No Minimum
- Competitive rates
- Non-status and full status
- Bridge short-term funding gaps
- Interest roll-up schemes
- Adverse Credit – no problem
- Funding can be available in 5 – 7 business days
- Funding for major property acquisitions
- Portfolio creation
- Development projects
- Commercial, Residential and Land
A large Bridging Loan is considered as a short-term, property-backed facility for amounts in excess of £2,500,000
Bridging Loans are short-term financial solutions which are usually secured on property and they have a number of uses. As the name suggests, Bridging Loans can bridge the gap between a debt coming due and a main line of credit becoming available - a common use is to purchase a property before an existing property is sold.
However, they have other uses too. They can be used to raise large qualities of cash on an existing property for investment elsewhere, and they can be used to buy property where a mortgage cannot be arranged.
They can also be used to secure very large properties for investment or development before long-term funding is arranged.
At Rangewell, we deal with Bridging loans at all levels. We regard a large Bridging Loan as being in excess of £2,500,000.
We know that the needs of high-value property investment are substantially different from many of the other areas in which bridging lenders operate, and require a highly experienced team to set up.
Large Bridging Loans may be used to:
Raise large quantities of cash for the short term. Using an existing property asset as a security for a short-term loan can provide a cost-effective way to raise cash for investment elsewhere. The only limit to the funding available will be the value of the property.
Provide a way of securing property for investment. Bridging Loans can be provided fast. Acquiring a major property, such as a retail estate or landmark building, may require a high level of funding that would not be available in time. The bridge is intended to be replaced with a mortgage or other lending for the long-term as soon as it can be arranged.
Provide funding for development. Unimproved land, obsolete and even derelict buildings - which are not suitable for mortgages - can be bought with a Bridging Loan. A large-scale bridge may be a simple way to fund both acquisition and development.
How much will a major bridge cost?
The cost of providing a major bridge will, inevitably, be high. Bridges are designed for short-term use with a maximum term of 2 years and, in most cases, much less, but as part of a properly structured deal, they may be highly cost-effective.
The actual cost, however, will depend on a number of different factors. The size of the loan and the purpose of the funding will be important factors. It will also be essential to have an exit strategy in place, which can include refinancing or the sale of the property.
A rate of 0.95% per month might be a starting point for negotiations. In addition to your monthly interest, lenders will also charge a lender arrangement fee – this is a fee for actually setting up the loan. This fee is usually between 1.5% and 2% of the loan amount, although this is sometimes discounted as low as 1%, especially on larger loans.
Remember, repayment is also negotiable. Monthly or staged repayments may be possible, but it is often preferable to arrange for interest and fees to be rolled up into a single final repayment.
REAL EXAMPLES OF WHAT WE CAN DO
Find a Bridging Finance deal to let a developer secure a 200-acre brownfield site in central London for a new estate
Source funding to allow a property company to buy an obsolete military base
Found a lender to create a package of short-term funding to buy a number of plots at auction
Find the most competitive funding arrangement to buy a thriving retail estate inside the M25
Why you need Rangewell to set up a large-scale bridge
While there are many bridging lenders throughout the UK, only a small proportion of these will be able to provide high-value property bridging. At Rangewell, we know those that are able to offer this kind of funding.
We also understand the different approaches and needs of each one. We understand the impact of every detail of the deal, and we will ensure that you are fully informed at every stage, to ensure that you can make the right decisions.
With funding in the £millions or £10s of millions, it is vital to have access to the experienced, trustworthy advice of our High-Value Bridging experts working for you. Their knowledge can help you secure the lending that really is right for your purposes - and to get it at the right price. Our knowledge can not only help you secure the funding you need for your development project - it can save you a great deal of cash.
It is also key to remember that Bridging Loans are designed and recommended for short-term use. We not only have the expertise to help you use them as a tactical source of funding for the short term, but we will continue to work to find the most competitive source of long-term funding.
Our knowledge of funding solutions for the property sector can be an important asset for your business. Call us to find out more.
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For property professionalsProfessional developers will use High-Value Bridging Finance as part of their overall funding for larger developments.
For businesses with property needsHigh-Value Bridging Loans can provide help to support all types of property acquisitions in excess of £2.5m.
Funding for any purposeSecuring funds on land you own or are looking to purchase can help you raise cash for use elsewhere in your business.
For developmentHigh-Value Bridges are a funding solution for development projects in excess of £2.5m which can then be refinanced at a higher value once work is completed.
A fast applicationBridging providers will look at several aspects, including your credit profile, the value of the asset you are wanting to purchase, as well as your exit strategy, to make a decision in the shortest possible time.
A single repaymentIn most cases, all fees, interest and charges can be rolled up into a single repayment made at the end of the loan term, when an alternative fund source has been arranged.
Download Rangewell’s free and detailed guide to Bridging Loans
How does a Bridging Loan work?
Is Bridging Finance classed as short-term finance?
How can a Bridging Loan support your business?
How do Bridging Lenders calculate the rate of interest on a loan amount?
What are the real costs - how do they vary between lenders?
Are all lenders authorised and regulated by the financial conduct authority?
What can a Bridging Loan be used for?
Is it a requirement that my business' registered office is registered in England and Wales?
The downsides of Bridging Loans
Bridging Finance options explained in more detail - including open and closed bridging loans, and pay monthly, rolled-up interest and retained interest short term loan
Completion dates for Bridging Loans explained clearly
What is the difference between a Bridging Loan, a Commercial Mortgage and a Buy to let Mortgage?
What paperwork do you need?
Are there administration fees with Bridging Loans?
What options have I for interest payments on a Bridging Loan?
Is it standard to make repayments every 28 days?
Guarantees and security
Key Terms to check
Can a commercial Bridging Loan be used for both commercial property and residential property if it is to be used for business purposes?
Is business finance the same as commercial finance?
How do interest rates vary between term loans?
How does the value of the property affect how much you can borrow?
Do I need an exit strategy in place before applying for Bridging Finance?
Does my company have to be limited, registered in England and have a Companies House registration number to be eligible for business finance?
You need to know how you will repayIt is essential to have a clear exit strategy to ensure the loan can be repaid to avoid paying high penalty interest rates.
Some Bridging Finance may require a regulated lenderIt is not always essential to use an FCA registered lender. Many reputable Bridging Lenders are members of the Association of Short Term Lenders, a self-regulating body which operates a strict code of conduct. Getting an expert view of which lender to use is essential.
Your property may be at riskYou should remember that a Bridging Loan works like a mortgage and property may be at risk if the loan repayments are not kept up to date.
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