If we described buying a property as a complicated business we would be playing down the difficulties of juggling the needs and wants of every party involved, not to mention considering finance options, loans and mortgages. They say you cannot put a price on happiness, but you certainly can put a price on that dream property. What’s more, you are going to find that that price keeps going up and up.
As we mentioned, when you are buying a property you are often reliant on other people moving at the same pace as you. We all know that the market moves incredibly quickly, and there can sometimes be a point at which you are ready to put down money on the property you want, but the buyer for your old property has not yet delivered on their offer. This is where bridge financing comes in.
The Basics: Why Do You Need Bridge Financing?
Bridging financing is where you can turn when you are against the clock and time is against you. As we mentioned, maybe you’re waiting for the money to come in from the sale of your current property before you can finalise the purchase of your new one. Maybe you need to commit to a major refurbishment of the property you have decided to buy, but all your capital is currently wrapped up in the purchase. And maybe it is a more complicated situation where the assets you had set aside for finalising that purchase suddenly become unavailable. This is where bridging finance comes in, a short-term mortgage or secured loan on an asset of high value.
How Do I Find Bridging Financing?
If you’re looking for bridging financing for a high value property, then it is always crucial to make sure that you use a reputable firm with plenty of experience. We don’t need to tell you how high the stakes can be in situations such as this, and while there may be many options available, you cannot put a price on the peace of mind that comes from placing your trust in the hands of a company that knows what they’re doing. It’s important to use the services of a firm that both understands the market and knows that every client and customer has their own unique set of circumstances, with the flexibility to tailor their strategy accordingly. Ennes are experts at bridging finance, with global reach and incredible lender access, not to mention superb pedigree.
What Are The Different Types Of Bridging Financing?
Typically, bridging financing comes in two forms. A closed bridge loan has a fixed end date, which means, of course, that you will need to be certain that you can return the sum borrowed by that point. If you’re not completely confident that your assets will be ready in time, you can look into an open bridge loan that comes without a fixed end date. Naturally, there is a downside to that flexibility which is that open bridge loans will typically be more expensive. With the market as chaotic as it is in the UK, we must again stress that employing the services of professionals with plenty of experience in this area is a must.