GUIDE TO BRIDGING FINANCE


which lists some common scenarios


where bridging can be used. Furthermore, we have a unique range


of products which support the most com- mon bridging situations. Our website and the guide provide fur-


ther information on the specialist range of bridging products listed below:


 REVOLVER 6 – Pre-approved revolving credit facility


 APPA28 – Pre-approval for suction purchases


 JV50 – Joint venture development loans


 STATUS 500– Bridging loans structured for high net worth borrowers


 NINO5 – A five-day loan for closed bridging residential property


 PER65 – Portfolio equity release facility


 RENOV8 – Residential property renovation funds for professional property landlords


 RESINVEST100 – Structured loans to provide 100% of purchase price funding


 ACQUI10 – Acquisition finance for business tenants


Most bridging loans are taken out for speed, given that bridging lenders can process, underwrite and complete advan - ces in much shorter time frames than mainstream institutional lenders.


Loans are made against value, irre-


spective of purchase price, and there are numerous other situations that can be identified where this form of financing is beneficial.


Auction purchases These types of purchases often have a short completion period of 28 days and bridging is often used to support pur- chases at auction. It gives borrowers time to subse-


quently complete their long-term financ- ing which is not likely to be ready within a 28-day period.


Development or refurbishment Bridging is regularly used to help finance building works by adding to the value of a property and securing a ten- ant, so that it can then be sold or ten- anted and remortgaged. Often the works carried out are necessary to boost the property value to enable a higher level of long-term remortgage to be secured.


Capital raising Capital raising is releasing equity from unencumbered or low-geared investment property to finance business require- ments or provide cash contributions to finance other property purchases or development costs. Those property entre-


preneurs with established investment portfolios can use equity in their portfo- lio to secure a bridging loan. This is based on a blend


of first charge security taken against a new prop- erty acquisition, plus sec- ond charge security on the property currently owned, to effectively borrow 100% of the funds required for the new purchase. Capital raising bridg- ing can also be used to release cash from equity


18 The guide to Bridging Finance 2012


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