The Benefits of Bridging in the UK Housing Market
A growing population, a squeeze on mortgages and a lack of housing are forcing ever more people to reconsider their housing options. As a result, investors, borrowers and landlords are competing over ever fewer properties. House prices are still rising, and Buy to Let lending has soared, as more and more property investors seek to capitalise on ever rising prices. Yet the lack of new home building means that properties ripe for conversion or refurbishment are also being seen as good opportunities for investment.
As bridging loans are not subject to habitability criteria imposed by mortgage lenders, then a bridging loan is ideal for conversion and refurbishment opportunities. This could range from either converting single dwellings into flats, changing retail space to residential, or developing a run- down and abandoned building. Either way, bridging finance makes development for profit possible. Provided the lender finds the exit route viable, then once works are completed the bridging loan can be repaid either by selling the property or by refinancing. If you plan to buy at auction, youb ll need the funds in place prior to bidding. Alternatively, bridging finance can be used to plug the gap between the sale of an existing property and a new one.
Contact us for help with finance for development, renovation or conversion work, through our bridging finance options. Finally, remember that some initial refurbishment or development work is eligible for VAT relief or exemption b yet property tax law is complex so we recommend you seek independent advice.For more help and useful information go to www.first4commercial.com first4commercial.com T:B 01277 620083B F:B 01277 658900B E:B firstname.lastname@example.org A:B 5 Alyssum Walk, Billericay Essex CM12 0SS]]>