Bridging finance

Development or Investment Purchase

During the current credit squeeze, the mainstream lenders appetite for funding development or investment purchase doesn’t really exist. This is not exactly helping the UK to recover from recession as quickly as it could do; if credit were once more available on a large scale.

Fortunately, there are plenty of entrepreneurs like you, in the UK that are continuing innovate, looking for opportunities worth pursuing, in order to contribute to their own wealth and the UK’s GDP.

All you need is access to some short term money, in order to make it happen?

At Enhanced Wealth, we have access to some very entrepreneurial focused Bridging lenders. Always trying to think outside of tick box, mainstream lending criteria; our bridging partners have helped to create some real wealth for our regular customers.

Bridging funders aim to ensure that a worth while development or investment opportunity does not founder, due to undiscriminating, mainstream lender caution.

A forward thinking bridging lender will seek to share your entrepreneurial view over the prospects of an opportunity.

If your minds meet over the prospect of a good return, if the security is appropriate and the exit makes sense….then it’s likely to be a green light.

No such thing as a standard, underwritten product here.

What can a bridging loan do for us?

Legitimate Under Value Purchase

Sometimes called “underbridge”; where the loan is based on the true value rather than the purchase price. These situations can be catered for in any legitimate arms length transaction.

Our professional Bridging partners are always willing to look at this type of lending. Thus, in some cases the borrower can finance 100% of the cost via bridging loan, sell on or arrange a refinance via a long term lender.

Refurbishment Bridge (loan could be based on the value, rather than the purchase price)

Great for the purchase of uninhabitable properties, needing a partial or full refurbishment. The traditional mortgage lending criteria does not allow for such purchases.

A good bridging loan can allow an entrepreneur to refurbish a property to sell on or present to a long term mortgage lender for retention as an investment property.

Auction Purchase

These are usually un-mortgageable under standard lending criteria, due to condition. In addition, funds are often needed within 28 days of the auction. An auction bridge can provide fast funds to complete the transaction quickly.

*minimum loan for these products is 150K

Liquidity Bridging

Bridging finance is a way of extracting cash from property assets on a short term basis. It is designed to meet the needs of applicants who are under liquidity/time stress, as opposed to those in financial distress.

It can be more expensive than term finance; however the gain from using this product, in most cases, outweighs the costs of buying it.

An example would be a situation where say the Inland Revenue were about to petition a court for a company winding up order for non payment of corporation tax. A” bridge” could save the day by paying the tax, whilst an asset is sold or money, already on the balance sheet as current assets, is actually received.

In short, a liquidity bridge is great any situation, where the benefits easily outweigh the cost.

*minimum loan for these products is 100K