BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

KNOWLEDGE BASE

Bridging   loans   are   a   great   solution   if   you   need   finance   quickly   to   take   advantage   of   either   time   limited   opportunities   or   to   resolve   emergency   situations.   Also known   as   short   term   loans   they   are   usually   secured   against   residential   or   commercial   property   but   sometimes   against   land   to   "bridge"   the   gap   until   longer term finance can be arranged or the underlying security is sold. Once   only   a   niche   product,   they   have   experienced   huge   year   on   year   growth   due   to   their   flexibility   and   quick   completion   times.   As   High   Street   Banks   have suffered   liquidity   restrictions   and   tightened   their   criteria   new   lenders   have   entered   the   market   offering   diverse   product   ranges   to   cater   for   almost   any scenario, no matter how complex. Bridging   Loans   can   now   be   used   for   a   wide   variety   of   reasons   from   purchasing   properties   at   auction   with   short   completion   deadlines   to   releasing   funds from   property   to   resolve   pressing   creditor   issues.   They   are   often   seen   as   the   ideal   way   to   prevent   a   chain   break,   to   inject   money   into   a   business   or   to downsize   by   releasing   equity   in   an   existing   property   to   complete   a   new   purchase   but   in   truth   there   are   a   huge   range   of   uses.   Whatever   the   use   however, speed of completion is usually of prime importance. The key components of a successful bridging loan are a suitable asset, acceptable use of funds and a clearly defined exit strategy.
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506   Email: enquiry@centralbridging.co.uk   Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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SO HOW DO BRIDGING LOANS WORK?

There   are   two   types   of   bridging   loan,   closed   and   open.   With   a   closed   loan   there   is   a   fixed   repayment   date   -   you   will   normally   be   given   this   kind   of   loan   if   you have   exchanged   contracts   but   are   waiting   for   a   property   sale   to   complete.   With   an   open   loan   there   is   no   fixed   repayment   date,   but   you   will   normally   be expected to pay it off within 12-18 months. Whichever   kind   of   loan   a   client   takes   the   lender   will,   as   stated   above,   want   to   see   evidence   of   a   clear   repayment   strategy;   such   as   using   equity   from   a property sale or taking out a longer-term mortgage. Bridging   loans   are   more   expensive   than   longer   term   loans   but   are   usually   completed   in   days   rather   than   the   months   that   a   longer-term   mortgage   typically takes.   They   can   be   secured   against   a   diverse   range   of   freehold   and   leasehold   properties   including   both   residential   and   commercial   buildings   and,   as   already mentioned, sometimes even on land. A   key   factor   in   securing   a   fast   completion   is   to   engage   the   services   of   a   solicitor   who   specialises   in   this   type   of   lending.   A   lawyer   experienced   in   bridging loans will be able to offer the best advice and make the process as smooth as possible.

WHO ARE BRIDGING LOANS AIMED AT?

Almost   anyone   who   has   property   assets   and   a   need   for   quick   funding.   Tailored   solutions   can   increase   liquidity,   protect   wealth,   resolve   pressing   creditor problems and in many cases open up new and exciting opportunities. Typical   short-term   borrowers   include:   property   investors   and   developers,   businessmen   needing   a   cash   injection,   professionals   with   short   term   credit   issues such as a large tax bill and many more besides.

TYPES OF

BRIDGING LOANS

First Charge Bridging Loans Knowledge Base

FIRST CHARGE

BRIDGING LOANS

A   first   charge   bridging   loan   is   the   primary   loan   secured   against either    residential    or    commercial    property    and    sometimes    on land.   This   loan   takes   precedence   over   any   other   finance   secured against the property.
Second Charge Bridging Loans Knowledge Base

SECOND CHARGE

BRIDGING LOANS

Second   charge   bridging   loans   can   be   obtained   if   the   mortgaged property,   be   it   residential   or   commercial,   still   has   sufficient   equity value   left/the   LTV   is   low   enough   for   a   lender   to   consider   offering a second charge loan.
Third Charge Bridging Loans  Knowledge Base

THIRD CHARGE

BRIDGING LOANS

Third   charge   bridging   loans   can   be   obtained   if   the   mortgaged property,   be   it   residential   or   commercial,   still   has   enough   equity left/the   loan   to   value   (LTV)   is   low   enough   for   a   lender   to   consider offering a third charge loan.
Commercial Bridging Loans Knowledge Base

COMMERCIAL

BRIDGING LOANS

Commercial    bridging    loans,    as    their    name    implies,    are    quite simply    bridging    loans    that    are    secured    against    commercial property.   In   common   with   other   types   of   bridging   they   are   used to obtain funds quickly.
Business Turnaround Loans Knowledge Base

BUSINESS

TURNAROUND LOANS

Business      Turnaround      loans      are      often      crucial      in      the implementation      of      innovative      restructuring      solutions      and strategies.   They   can   be   vital   to   the   restructuring,   stabilisation   and ultimately the revitalisation of previously failing businesses.
Short Lease Bridging Loans Knowledge Base

SHORT LEASE

BRIDGING LOANS

When   lending   against   leasehold   properties   High   Street   lenders will   typically   insist   on   a   minimum   50   year   period   remaining   on   the lease   before   consenting   to   a   loan.   They   will   also   generally   require the lease to be extended at the point of completion.
APN & EBT Loans Knowledge Base

APN & EBT LOANS

Much   has   been   made   of   the   Government’s   clampdown   on   what   it considers    to    be    corporate    tax    avoidance    in    recent    years    and Accelerated   Payment   Notices   (APNs)   are   seen   as   a   key   weapon   in HMRC’s   battle   to   deliver   increased   revenue   to   the   Treasury   via   a ‘fairer’ taxation system.

STILL UNSURE & NEED ADVICE?

WHY NOT CONSULT AN EXPERT?

Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record.   We   are   a   principal   lender   offering   a   range   of   loan   facilities   for   business   use   from £250K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to   understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks   will   then tailor a solution that best suits your needs rather than their own.
None Status Bridging Loans Knowledge Base

NON-STATUS

BRIDGING LOANS

Non-status    bridging    loans    can    be    an    invaluable    tool    in    the armoury   of   property   developers   and   investors   allowing   them   to borrow large sums of money very quickly.
Inheritance Tax Loans Knowledge Base

INHERITANCE TAX

LOANS

Many   estates   in   the   UK   become   liable   for   Inheritance   Tax   (IHT) settlement    no    later    than    the    end    of    the    six    month    after someone’s     death.     The     deceased     person’s     estate     must     pay inheritance tax at 40% tax on everything above £325,000.
Probate Loans Knowledge Base

PROBATE LOANS

Probate   is   the   process   of   dealing   with   somebody’s   estate   when they   pass   away.   This   is   usually   carried   about   by   an   executor,   an administrator    or    a    blood    relative    -    typically    someone    who    will benefit from the will.
Specialist Bridging Loans Knowledge Base

SPECIALIST

BRIDGING LOANS

It   is   sometimes   the   case   that   applicants   seeking   bridging   finance simply    do    not    have    enough    available    equity    in    their    property assets     to     satisfy     the     loan     to     value     (LTV)     requirements     of mainstream lenders.
VAT Bridging Loans Knowledge Base

VAT

BRIDGING LOANS

By   default,   commercial   property   is   exempt   from   VAT   but   it   is   not as     simple     as     that.     There     are     some     exemptions     such     as commercial   property   less   than   three   years   old   which   is   standard rated at 20%.
Auction Purchase & Bridge To Let Loans Knowledge Base

AUCTION PURCHASE

& BRIDGE TO LET LOANS

A   common   use   of   bridging   loans   is   for   properties,   both   residential and    commercial,    purchased    at    auctions.    When    a    property    is acquired    at    auction    the    investor    is    usually    required    to    pay    a deposit of circa 10% up front and the balance within 30 days.
Residential Bridging Loans Knowledge Base

RESIDENTIAL

BRIDGING LOANS

Residential   bridging   loans   can   help   clients   in   a   variety   of   situations. They   are   designed   to   be   flexible,   fast   and   to   help   meet   applicants pressing financial needs when dealing in the property market.
Refurbishment & Renovation Loans Knowledge Base

REFURBISHMENT &

RENOVATION LOANS

Refurbishment   and   Renovation   loans   can   be   a   really   useful   tool   for developers   looking   to   complete   either   a   heavy   refurbishment   or minor   development   of   an   existing   residential   property   or   to   fund   a change of use from commercial to residential property.
Offshore Company Loans Knowledge Base

OFFSHORE COMPANY

LOANS

Wherever   possible,   overseas   buyers   should   consider   acquiring   UK property   in   the   name   of   an   offshore   company   or   other   offshore vehicle.     This     is     obviously     subject     to     consideration     of     the administration and running costs of the company.
Development Loans Knowledge Base

DEVELOPMENT LOANS

Development     Loans     are     designed     to     help     developers     fund renovations     and     refurbishments     or     conversions     of     existing property or to build brand new properties on a ground-up basis.
Loans For Foreign Nationals & Expats

LOANS FOR FOREIGN

NATIONALS & EXPATS

A    select    number    of    specialist    lenders    are    prepared    to    offer bridging   loans   to   Foreign   Nationals   and   Expats   and   although   the products   offered   are   generally   the   standard   options   available   to   all UK based borrowers the verification processes are more rigorous.
Re-Bridging Existing Bridging Loans Knowledge Base

RE-BRIDGING EXISTING

BRIDGING LOANS

There   can   be   a   large   variety   of   reasons   why   borrowers   with   an existing   bridging   loan   find   themselves   unable   to   exit   this   loan   at the end of its term.
Larger Loans For High Value Properties Knowledge Base

LARGER LOANS FOR

HIGH VALUE PROPERTIES

High   value   bridging   finance   is   a   specialist   and   technical   market, encompassing   loans   that   generally   start   from   £1M   upwards   and are   often   sophisticated   and   complex.   Large   bridging   finance   loan facilities are increasingly being used by High Net Worth individuals.
Regulated & Unregulated Loans Knowledge Base

REGULATED &

UNREGULATED LOANS

Bridging   loans   are   an   ideal   solution   for   individuals   and   businesses that   need   to   move   quickly   to   take   advantage   of   an   opportunity. They    come    in    two    principle    forms,    regulated    and    unregulated loans with the latter being much more numerous than the former  .

BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

Bridging   loans   are   a   great   solution   if   you   need   finance   quickly   to   take advantage   of   either   time   limited   opportunities   or   to   resolve   emergency situations.    Also    known    as    short    term    loans    they    are    usually    secured against   residential   or   commercial   property   but   sometimes   against   land to   "bridge"   the   gap   until   longer   term   finance   can   be   arranged   or   the underlying security is sold. Once   only   a   niche   product,   they   have   experienced   huge   year   on   year growth   due   to   their   flexibility   and   quick   completion   times.   As   High   Street Banks   have   suffered   liquidity   restrictions   and   tightened   their   criteria   new lenders    have    entered    the    market    offering    diverse    product    ranges    to cater for almost any scenario, no matter how complex. Bridging    Loans    can    now    be    used    for    a    wide    variety    of    reasons    from purchasing    properties    at    auction    with    short    completion    deadlines    to releasing   funds   from   property   to   resolve   pressing   creditor   issues.   They are   often   seen   as   the   ideal   way   to   prevent   a   chain   break,   to   inject   money into   a   business   or   to   downsize   by   releasing   equity   in   an   existing   property to   complete   a   new   purchase   but   in   truth   there   are   a   huge   range   of   uses. Whatever    the    use    however,    speed    of    completion    is    usually    of    prime importance. The   key   components   of   a   successful   bridging   loan   are   a   suitable   asset, acceptable use of funds and a clearly defined exit strategy.
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506  Email: enquiry@centralbridging.co.uk Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
Facebook Logo Google+ Logo Instagram Logo LinkedIn Logo Twitter Logo Google Maps Logo YouTube Logo ASTL Logo NACFB Logo FIBA Logo London Chamber of Commerce and Industry Logo

KNOWLEDGE BASE

SO HOW DO BRIDGING

LOANS WORK?

There   are   two   types   of   bridging   loan,   closed   and   open.   With   a   closed   loan there   is   a   fixed   repayment   date   -   you   will   normally   be   given   this   kind   of   loan if    you    have    exchanged    contracts    but    are    waiting    for    a    property    sale    to complete.   With   an   open   loan   there   is   no   fixed   repayment   date,   but   you   will normally be expected to pay it off within 12-18 months. Whichever   kind   of   loan   a   client   takes   the   lender   will,   as   stated   above,   want to   see   evidence   of   a   clear   repayment   strategy;   such   as   using   equity   from   a property sale or taking out a longer-term mortgage. Bridging   loans   are   more   expensive   than   longer   term   loans   but   are   usually completed   in   days   rather   than   the   months   that   a   longer-term   mortgage typically   takes.   They   can   be   secured   against   a   diverse   range   of   freehold   and leasehold   properties   including   both   residential   and   commercial   buildings and, as already mentioned, sometimes even on land. A   key   factor   in   securing   a   fast   completion   is   to   engage   the   services   of   a solicitor   who   specialises   in   this   type   of   lending.   A   lawyer   experienced   in bridging   loans   will   be   able   to   offer   the   best   advice   and   make   the   process   as smooth as possible.

WHO ARE BRIDGING

LOANS AIMED AT?

Almost    anyone    who    has    property    assets    and    a    need    for    quick    funding. Tailored    solutions    can    increase    liquidity,    protect    wealth,    resolve    pressing creditor     problems     and     in     many     cases     open     up     new     and     exciting opportunities. Typical   short-term   borrowers   include:   property   investors   and   developers, businessmen   needing   a   cash   injection,   professionals   with   short   term   credit issues such as a large tax bill and many more besides.

STILL UNSURE & NEED

ADVICE? WHY NOT

CONSULT AN EXPERT?

Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record.   We are   a   principal   lender   offering   a   range   of   loan   facilities   for   business   use   from £250K   to   £2.5M   over   periods   from   3   to   24   months.   Our   loans   are   secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks   will then tailor a solution that best suits your needs rather than their own.

TYPES OF

BRIDGING LOANS

First Charge Bridging Loans Knowledge Base

FIRST CHARGE

BRIDGING LOANS

A   first   charge   bridging   loan   is   the   primary   loan   secured   against either   residential   or   commercial   property   and   sometimes   on   land. This    loan    takes    precedence    over    any    other    finance    secured against the property.
Second Charge Bridging Loans Knowledge Base

SECOND CHARGE

BRIDGING LOANS

Second   charge   bridging   loans   can   be   obtained   if   the   mortgaged property,   be   it   residential   or   commercial,   still   has   sufficient   equity value   left/the   LTV   is   low   enough   for   a   lender   to   consider   offering   a second charge loan.
Third Charge Bridging Loans  Knowledge Base

THIRD CHARGE

BRIDGING LOANS

Third    charge    bridging    loans    can    be    obtained    if    the    mortgaged property,   be   it   residential   or   commercial,   still   has   enough   equity left/the   loan   to   value   (LTV)   is   low   enough   for   a   lender   to   consider offering a third charge loan.
Commercial Bridging Loans Knowledge Base

COMMERCIAL

BRIDGING LOANS

Commercial   bridging   loans,   as   their   name   implies,   are   quite   simply bridging   loans   that   are   secured   against   commercial   property.   In common    with    other    types    of    bridging    they    are    used    to    obtain funds quickly.
Business Turnaround Loans Knowledge Base

BUSINESS

TURNAROUND LOANS

Business       Turnaround       loans       are       often       crucial       in       the implementation      of      innovative      restructuring      solutions      and strategies.   They   can   be   vital   to   the   restructuring,   stabilisation   and ultimately the revitalisation of previously failing businesses.
Short Lease Bridging Loans Knowledge Base

SHORT LEASE

BRIDGING LOANS

When    lending    against    leasehold    properties    High    Street    lenders will   typically   insist   on   a   minimum   50   year   period   remaining   on   the lease   before   consenting   to   a   loan.   They   will   also   generally   require the lease to be extended at the point of completion.
APN & EBT Loans Knowledge Base

APN & EBT LOANS

Much   has   been   made   of   the   Government’s   clampdown   on   what   it considers    to    be    corporate    tax    avoidance    in    recent    years    and Accelerated   Payment   Notices   (APNs)   are   seen   as   a   key   weapon   in HMRC’s   battle   to   deliver   increased   revenue   to   the   Treasury   via   a ‘fairer’ taxation system.
None Status Bridging Loans Knowledge Base

NON-STATUS

BRIDGING LOANS

Non-status    bridging    loans    can    be    an    invaluable    tool    in    the armoury   of   property   developers   and   investors   allowing   them   to borrow large sums of money very quickly.
Inheritance Tax Loans Knowledge Base

INHERITANCE TAX

LOANS

Many   estates   in   the   UK   become   liable   for   Inheritance   Tax   (IHT) settlement    no    later    than    the    end    of    the    six    month    after someone’s     death.     The     deceased     person’s     estate     must     pay inheritance tax at 40% tax on everything above £325,000.
Probate Loans Knowledge Base

PROBATE LOANS

Probate   is   the   process   of   dealing   with   somebody’s   estate   when they   pass   away.   This   is   usually   carried   about   by   an   executor,   an administrator    or    a    blood    relative    -    typically    someone    who    will benefit from the will.
Specialist Bridging Loans Knowledge Base

SPECIALIST

BRIDGING LOANS

It   is   sometimes   the   case   that   applicants   seeking   bridging   finance simply    do    not    have    enough    available    equity    in    their    property assets     to     satisfy     the     loan     to     value     (LTV)     requirements     of mainstream lenders.
VAT Bridging Loans Knowledge Base

VAT

BRIDGING LOANS

By   default,   commercial   property   is   exempt   from   VAT   but   it   is   not as     simple     as     that.     There     are     some     exemptions     such     as commercial   property   less   than   three   years   old   which   is   standard rated at 20%.
Auction Purchase & Bridge To Let Loans Knowledge Base

AUCTION PURCHASE

& BRIDGE TO LET LOANS

A   common   use   of   bridging   loans   is   for   properties,   both   residential and    commercial,    purchased    at    auctions.    When    a    property    is acquired    at    auction    the    investor    is    usually    required    to    pay    a deposit of circa 10% up front and the balance within 30 days.
Residential Bridging Loans Knowledge Base

RESIDENTIAL

BRIDGING LOANS

Residential   bridging   loans   can   help   clients   in   a   variety   of   situations. They   are   designed   to   be   flexible,   fast   and   to   help   meet   applicants pressing financial needs when dealing in the property market.
Refurbishment & Renovation Loans Knowledge Base

REFURBISHMENT &

RENOVATION LOANS

Refurbishment   and   Renovation   loans   can   be   a   really   useful   tool   for developers   looking   to   complete   either   a   heavy   refurbishment   or minor   development   of   an   existing   residential   property   or   to   fund   a change of use from commercial to residential property.
Offshore Company Loans Knowledge Base

OFFSHORE COMPANY

LOANS

Wherever   possible,   overseas   buyers   should   consider   acquiring   UK property   in   the   name   of   an   offshore   company   or   other   offshore vehicle.     This     is     obviously     subject     to     consideration     of     the administration and running costs of the company.
Development Loans Knowledge Base

DEVELOPMENT LOANS

Development     Loans     are     designed     to     help     developers     fund renovations     and     refurbishments     or     conversions     of     existing property or to build brand new properties on a ground-up basis.
Loans For Foreign Nationals & Expats

LOANS FOR FOREIGN

NATIONALS & EXPATS

A    select    number    of    specialist    lenders    are    prepared    to    offer bridging   loans   to   Foreign   Nationals   and   Expats   and   although   the products   offered   are   generally   the   standard   options   available   to   all UK based borrowers the verification processes are more rigorous.
Re-Bridging Existing Bridging Loans Knowledge Base

RE-BRIDGING EXISTING

BRIDGING LOANS

There   can   be   a   large   variety   of   reasons   why   borrowers   with   an existing   bridging   loan   find   themselves   unable   to   exit   this   loan   at the end of its term.
Larger Loans For High Value Properties Knowledge Base

LARGER LOANS FOR

HIGH VALUE PROPERTIES

High   value   bridging   finance   is   a   specialist   and   technical   market, encompassing   loans   that   generally   start   from   £1M   upwards   and are   often   sophisticated   and   complex.   Large   bridging   finance   loan facilities are increasingly being used by High Net Worth individuals.
Regulated & Unregulated Loans Knowledge Base

REGULATED &

UNREGULATED LOANS

Bridging   loans   are   an   ideal   solution   for   individuals   and   businesses that   need   to   move   quickly   to   take   advantage   of   an   opportunity. They    come    in    two    principle    forms,    regulated    and    unregulated loans with the latter being much more numerous than the former  .
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