Bridging Loans & Property Development Finance 1st stop finance are one of the leading brokers in the UK, we are able to quickly identify your needs and offer the very best solution for your loan requirement.
At 1st Stop finance, we arrange bridging loans & development finance for any purpose, as one of the leading brokers in the UK we have access to virtually every lender in the marketplace.
We can arrange your Bridging Loan for any purpose with speed and efficiency with one of our friendly consultants.
We have a proven track record of working with all of the lenders in the UK and are considered a master broker due to the volume of business we provide for them. All of our fees are paid for by the lender and only when you receive your loan, do we get paid.
What is a Bridging Loan
Bridging loans also known as bridging Finance is basically a short-term finance solution, most commonly used as capital to fund a property purchase a renovation or a short-term cash requirement.
The loans act as a “bridge” between cash going out and cash coming in, such as in an auction purchase where funds are required to make the purchase within 28 days of the auction. Compared to regular loans, they are most often used for short-term purposes as the funds can be released very fast. In some cases, this can be as little as a few days.
We have a very experienced team working on providing the best deals from the leading UK banks. We have a proven track record and have been working with all of the leading lenders in the marketplace, as a result, we can always offer you the lowest interest rates available.
We can provide bridging finance for many situations including:
Bridging Loans for Property purchase
If you’re looking to buy a new house and require extra funds to make the purchase due to not having sold your own, we can provide bridging finance to “bridge the gap” for you until you have sold your own. Then when you sell your old property, the proceeds can be used to pay off the bridging loan
A Bridging Loan for an Auction purchase
If you are successful in bidding for a property at auction, the auctioneer will require you to place a 10% deposit on the day with the full balance falling due within 28 days. Thanks to the speed at which bridging finance can be arranged, the balance required can be obtained within the 28 day period in order to pay for the property. You can then make plans for a traditional mortgage or sell the property and redeem the bridging loan.
Renovation of regular or dilapidated property
Bridging loans are very useful if money is needed to renovate a property to increase its value. Many properties cannot get a traditional mortgage due to them being in a dilapidated state, with access to a bridging loan you can borrow against the property to purchase the property and also the funding to carry out any required repairs, before selling or arranging a mortgage.
Purchasing property below market value
If you find a property that is far below market value, a bridging loan can be used so that you can quickly purchase the property, without going through a full mortgage application that could take months to complete
Business cash injections
We can also provide finance for situations such as when money is needed to buy new equipment for a company, or you need cash to pay an unexpected bill, as long as you have a property with equity in it then finance can be arranged.
Any other situation
Bridging loans are very flexible and as long as there is a good exit strategy, they can be taken out for almost any legal purpose.
Specialists in Bridging Loans & Development Finance
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We only get paid by the lender on drawdown
At 1st Stop finance, we offer Property Development finance for new build projects, conversions of an existing property into multiple units or refurbishment of an existing property whatever your requirements we can arrange your development loans with speed and efficiency.
We have a proven track record of working with both experienced developers and also first-time developers in order to arrange development loans. Indeed many of the first time developers we have helped arrange finance for over the years, have now gone on to larger schemes thanks to our initial efforts and are now considered fully experienced property developers.
We are also successful in arranging finance for experienced developers who are struggling with their own banks, it could be that their own bank is funding one project and not keen on any further exposure, or that they are just not keen to offer to fund the development, 1st stop finance are experts at arranging finance in all of these scenarios.
We compare the whole of the market to ensure we get a tailor-made solution that fits your needs exactly, we also use our years of expertise to discuss your requirement and then place you with a lender based on your circumstances. With any development project, you need to know that your funding is secured before starting work.
Once you have commenced works on site, it can be very difficult to arrange additional funding and even then it is usually raised with a bridging loan. Property Development Finance should always be put in place before any works are started.
Before any funding is released the lender will need to see that planning is in place and that all of the outstanding conditions have been complied with wherever possible. Obviously, things like materials such as bricks and roof finishes can be dealt with at a later stage but if the conditions can be dealt with prior to the loan being released then a lender would expect them to have been dealt with.
A Lender would also need the following items
A copy of any planning permission that has been granted on the site, including outstanding conditions, it would also have to be full planning permission, lenders would not consider lending against an outline approval. In the past an outline approval could be just a couple of squares on a plan and that could be granted as outline planning, however in recent years this has changed a lot and for an outline permission you have to supply as much information as a full application so there is not much point in doing an outline application at all.
Appraisal of the project
In order to evaluate your project for development finance you would need to provide an appraisal and cash flow the appraisal should show a list of all of the costs that are associated with the development and include things like, architects fees, finance charges, construction costs, selling fees, warranties and everything that is likely to be spent over the life of the project. In addition they will want to see a detailed cash flow, showing where and when the cash input is required, typically this will show site purchase, warranty costs and then go through various stages when cash will be required, these would include Foundations, Wallplate, roof, first fix, 2nd fix and then completion.
When applying for property development finance a lender will also want information on who is going to be doing the construction works, if you are a builder you will have to demonstrate that you have completed projects before to the lender's satisfaction. If you intend to employ a builder to carry out the works on your behalf then you would need to employ a contractor on a fixed price contract, with projects of less than £200k these would not be a requirement.