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demographic. This allows others to capitalise on the buy-to-let boom that perhaps wouldn’t have previ- ously been able to do so. Changing the use of a property is one way in which prospective landlords are capitalising on the buy-to-let boom. Bridging finance is the perfect tool to allow people to respond to this market trend. The quick turnaround of funds means the work can begin and the customer can start reaping the rewards of their investment.
NEW PRODUCTS
Blemain Group has recently launched a pre-approved auction purchase product meaning custom- ers can bid on property at auction with peace of mind. It also includes a property valuation bypass mean- ing no valuation is needed for residential properties worth less than £150k. The process for ap- proval will be that much quicker and accessible to a wider range of customers and ensure an efficient turnaround time when it is most valuable.
It looks as though the demand
for bridging finance can remain strong throughout 2012 with the opportunities in the housing market and business and is a product that should be part of any finance broker’s product portfolio.
LOOKING TOWARDS THE FUTURE We have already seen the influx of new specialist loan providers and short-term lenders in past few months alone which is likely to continue throughout 2012. over the past few years we have seen the industry tackle the eco- nomic downturn with resilience and innovation. Adapting products and providing opportunities when traditional lenders can’t ensures that the market keeps moving. The fighting spirit of the indus- try looks set to continue through 2012 and lenders and brokers alike are all working together to ensure
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longevity. However, just as with any industry the introduction of too much new competition could satu- rate this already restricted market and the industry as a whole needs to be wary of this. The market will only grow if more brokers and intermediaries have a better understanding of the role they play in its development and a better understanding of the niches that the different lenders operate in such as LTVs, loan size and even the geographical loca- tion of where they will lend. This will help ensure there is room for growth and guarantee longevity in the short-term lending market.
Case study:
Investment property Two investment properties were purchased in just four hours, following the offer of a discount from the builder in exchange for same-day completion. This opportunity was simply too good to miss and the client called Blemain Group that morning. The client’s own contribution combined with the property discount led to a worthwhile deal for all parties to have completion by the end of the day. From the initial call at 11am the solicitors were instructed and funds released by 3pm the same day.
Case study:
Extending a lease prior to sale Funds were provided to a recent client who needed to purchase a lease extension in central London. The client was in the process of selling a high quality investment property in Knightsbridge, London which was on the market for in excess of half a million pounds. A sale was being negotiated but the client was aware that the current lease only had five years remaining and this would need to be resolved prior to the sale. The client had already negotiated to extend the lease to 95 years prior to purchase
Blemain Group has a wealth of
experience within the specialist lending market and has survived four recessions. We have done this by listening to what our brokers need and what their customers want.
Adapting and changing our
existing offering as well as coming up with entirely new and innova- tive financial solutions to cater for the ever expanding and evolving market has allowed us deliver qual- ity and relevant products. For more information on
how Blemain Group can help you, visit its website at
www.blemaingroup.co.uk
however to do this he needed to perfect the lease prior to completion in just three days.
The one bedroom investment property was unencumbered and the client received a loan of £260,000 in order to perfect the lease prior to completing the sale.
Case study: Pre-approved bridging
finance prior to auction The client had seen property that they wanted to purchase at auction to renovate for the rental market. Although they had a £35,000 deposit and funds to renovate the property, they still needed bridging finance to fund the residual. Lancashire Mortgage Corporation was approached to provide a pre-approved bridging loan. A Hometrack valuation was conducted on the property, the case underwritten and a loan amount of £65,000 was agreed within one hour. The client went to auction with the confidence that they had the funds in place and could bid with confidence. The client offered the highest bid, secured the property and placed the 10% deposit. As the loan had been pre-approved the purchase was completed and renovation work commenced within 72 hours of placing the deposit.
BRIdGInG InTRodUCER MAY 2011 33
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