BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

RE-BRIDGING EXISTING

BRIDGING LOANS

KNOWLEDGE BASE

There   can   be   a   large   variety   of   reasons   why   borrowers   with   an   existing   bridging   loan   find   themselves   unable   to   exit   the   loan   at   the   end   of   its   term. Unexpected   delays   can   hold   up   a   renovation   project,   perhaps   due   to   unforeseen   complications   with   building   works   or   planning   permission   issues. Alternatively,   market   conditions   might   change   affecting   the   availability   of   mortgages   or   the   prospects   of   a   sale   and   sometimes   it   can   be   as   simple   as   the original loan period sought was just too short. In   the   past   many   bridging   lenders   were   at   best   reluctant   and   at   worst   completely   unwilling   to   offer   bridging   loans   to   refinance   a   previous   bridging   loan   but there   are   now   some   lenders   that   will   consider   re-bridges.   To   do   so   they   will   need   to   understand   exactly   why   the   previous   bridge   has   not   redeemed   as planned and be convinced that any subsequent loan they advance will be successfully redeemed. Bridging   loans   are   often   sold   as   a   dual   rate   product   with   a   discounted   rate   for   a   defined   loan   term,   be   that   3,12   or   even   24   months   and   a   standard   rate   is then   applied   if   this   loan   goes   over   the   agreed   term.   The   standard   rate   can   often   be   substantially   higher   than   the   discounted   meaning   that   a   loan, particularly if its large, that goes past its planned redemption date can quickly accrue significant sums of additional interest. Certain    industry    commentators    seem    to    feel    that    re-bridging    is    a    bad    thing    for    the    industry    and    irresponsible,    suggesting    that    its    indicative    of    an increasingly   competitive   market   where   lenders   are   being   forced   to   take   ever   greater   risks   to   obtain   market   share.   Of   course,   the   absolute   key   for   any bridging   loan   is   a   clear   exit   route   and   if   a   loan   needs   to   be   re-bridged   then,   by   definition,   something   has   gone   wrong   with   the   originally   planned   exit. However, as detailed in the reasons above, potential problems and delays cannot always be anticipated. If   unforeseen   problems   arise   with   a   development   but   the   the   work   is   well   underway,   the   residual   value   of   the   property   has   increased,   the   developer   is competent   with   a   good   track   record   and   it   is   clear   that   it   can   be   finished   within   a   set   period,   then   it   can   make   perfect   sense   for   a   new   lender   to   provide another bridging loan. In   circumstances   such   as   these   responsible   lenders   are   prepared   to   take   the   time   and   have   the   in-house   expertise   to   fully   assess   a   potential   re-bridge. Once they fully understand what’s happened to reach this point they can make an informed decision on whether they are prepared to assist. Of   course,   not   all   re-bridges   are   assessed   so   fully   and   in   a   worst-case   scenario   there   can   be   instances   where   a   property   has   been   re-bridged   several   times with   fees   spiralling,   equity   being   eaten   away   and   still   no   clearly   defined   exit   plan   in   place.   Such   cases   merely   serve   to   underline   the   absolute   importance   of working directly and closely with an experienced principal lender who can ensure that any re-bridge undertaken is a success. Still unsure and need to explore your options? 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. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
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

BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

There   can   be   a   large   variety   of   reasons   why   borrowers   with   an   existing bridging   loan   find   themselves   unable   to   exit   the   loan   at   the   end   of   its term.   Unexpected   delays   can   hold   up   a   renovation   project,   perhaps   due to   unforeseen   complications   with   building   works   or   planning   permission issues.    Alternatively,    market    conditions    might    change    affecting    the availability   of   mortgages   or   the   prospects   of   a   sale   and   sometimes   it   can be as simple as the original loan period sought was just too short. In   the   past   many   bridging   lenders   were   at   best   reluctant   and   at   worst completely    unwilling    to    offer    bridging    loans    to    refinance    a    previous bridging    loan    but    there    are    now    some    lenders    that    will    consider    re- bridges.   To   do   so   they   will   need   to   understand   exactly   why   the   previous bridge    has    not    redeemed    as    planned    and    be    convinced    that    any subsequent loan they advance will be successfully redeemed. Bridging   loans   are   often   sold   as   a   dual   rate   product   with   a   discounted rate   for   a   defined   loan   term,   be   that   3,12   or   even   24   months   and   a standard   rate   is   then   applied   if   this   loan   goes   over   the   agreed   term.   The standard    rate    can    often    be    substantially    higher    than    the    discounted meaning   that   a   loan,   particularly   if   its   large,   that   goes   past   its   planned redemption    date    can    quickly    accrue    significant    sums    of    additional interest. Certain   industry   commentators   seem   to   feel   that   re-bridging   is   a   bad thing   for   the   industry   and   irresponsible,   suggesting   that   its   indicative   of an   increasingly   competitive   market   where   lenders   are   being   forced   to take   ever   greater   risks   to   obtain   market   share.   Of   course,   the   absolute key   for   any   bridging   loan   is   a   clear   exit   route   and   if   a   loan   needs   to   be   re- bridged   then,   by   definition,   something   has   gone   wrong   with   the   originally planned    exit.    However,    as    detailed    in    the    reasons    above,    potential problems and delays cannot always be anticipated. If   unforeseen   problems   arise   with   a   development   but   the   the   work   is   well underway,     the     residual     value     of     the     property     has     increased,     the developer   is   competent   with   a   good   track   record   and   it   is   clear   that   it can   be   finished   within   a   set   period,   then   it   can   make   perfect   sense   for   a new lender to provide another bridging loan. In   circumstances   such   as   these   responsible   lenders   are   prepared   to   take the   time   and   have   the   in-house   expertise   to   fully   assess   a   potential   re- bridge.   Once   they   fully   understand   what’s   happened   to   reach   this   point they   can   make   an   informed   decision   on   whether   they   are   prepared   to assist. Of   course,   not   all   re-bridges   are   assessed   so   fully   and   in   a   worst-case scenario   there   can   be   instances   where   a   property   has   been   re-bridged several   times   with   fees   spiralling,   equity   being   eaten   away   and   still   no clearly   defined   exit   plan   in   place.   Such   cases   merely   serve   to   underline the     absolute     importance     of     working     directly     and     closely     with     an experienced     principal     lender     who     can     ensure     that     any     re-bridge undertaken is a success. Still   unsure   and   need   to   explore   your   options?   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. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
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

RE-BRIDGING EXISTING

BRIDGING LOANS

KNOWLEDGE BASE

Central Bridging Loans Logo
Products Dropdown Arrow
Central Bridging Loans Logo