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.

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   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   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.
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

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 loans 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   want   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  .
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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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
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   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   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.
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

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 loans 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   want   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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