Bridging Finance

ABFL has access to a number of funders that can provide bridging loans and development finance secured on property that can be used for a range of purposes including, but not limited to:

Bridging the gap between purchase and sale, Raising working capital, Downsizing, Portfolio restructuring, Term facility repayment, Asset purchase & / or refinance, Project/Development Finance

 

Key Features, subject to status

 

Residential and mixed use security property, No upper age limit (usually, some lenders do apply restrictions), No ERCs after 1st month, Daily interest after 1st month, Offshore companies and trust borrowers can be accommodated, Rolled interest facility, Valuations and legal fees at cost,

 

Typical lending criteria: (varies from lender to lender)

  • Minimum loan size £100k (can be lower in certain circumstances)
  • Maximum loan size up to £15m (most lenders though will not exceed £5m)
  • Residential and mixed use security
  • Land with planning considered
  • Max LTV 70% MV  (can vary between 50% and 75% LTV depending on deal and lender parameters)
  • LTV based on lower of market value or purchase
  • Minimum property value £150k
  • England & Wales locations
  • In excess of 12 months terms available (in certain cases – see below)
  • No upper age limit (some lenders do have imposed age limits)
  • Individual, corporate and trust borrowers (some lenders do not encourage trust borrowers)
  • Off shore borrowers welcome (in some cases only – needs to be considered on case by case basis)
  • Realistic and viable exit

 

For certain types of project finance e.g. building renewable energy facilities, property/land is required as part of the overall security package.   These facilities can run for up to 3 years, provided a realistic and achievable exit strategy is defined and agreed with the lender.