Residential bridging can be a great option for clients who need a short-term solution when buying a property. I was recently able to arrange residential bridging for two clients who needed a finance facility before acquiring planning permission and selling land on their estate.
My clients in this instance were an older married couple, who were living in a property which they only partly owned. They had inherited the majority of the property, but another part had been inherited by another family member. However, they were looking to acquire full ownership of the property, so they were exploring their finance options.
The house came with quite extensive land, which they already had planning permission in place for. As it stood, they had an offer to sell the land with planning permission in place. However, if they bought the property in full, they would be able to acquire further planning permission to build another house. This would mean they could sell the land with planning permission for considerably more.
As they would be able to repay the loan in full upon the sale of the land, my clients were only looking for a short-term finance solution—and they also needed a speedy resolution. As such, they approached me to discuss their options.
My clients were looking for a loan of around £350,000, against a property worth £850,000. Despite my clients being older borrowers, I was able to negotiate with a specialist bank for a market leading bridging rate of just 0.49%.
If you are interested in residential bridging finance to fill a short-term gap in your finances, I would be happy to have a further discussion regarding your situation. In recent years, the traditional view of the bridging market as a specialist area has been overturned. Nowadays, it is a popular product available from a range of lenders, and it has a crucial part to play in the UK property market.