Bridging Finance
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Bridging Finance

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Bridging Finance, versatile finance to meet a variety of needs

In a nutshell:

  • Loan to Value up to 80% of valuation or higher with additional security
  • Borrowing from £25,000 to £25,000,000
  • Terms 1 – 24 months
  • 1st and 2nd Charge available
  • Where the valuation is higher than the purchase price up to 100% funding of purchase price may be achievable
  • All areas of UK covered
  • Loan availability, loan terms, lender fees and rates will vary depending on financials and background
  • Business purposes only

What we do

We find Bridging Finance! This is our passion and area of expertise, we have helped both new and established property businesses find Bridging Finance and we are well equipped to meet a variety of Bridging Finance needs.

What’s more is we are always happy to provide a free consultation, we are here to answer any questions and we help to find suitable funding anywhere in the UK.

So, you’ve got a Bridging Finance need or you’re wondering if Bridging Finance is suitable for your project. However, with so many possibilities and options, sometimes you need a little help in finding the lender who meets your specific needs. Good news - you’ve found the company that’s here to support you every step of the way, to help you find a suitable solution for your project.

Why choose us

Every project is unique, and at Luc Capital, sourcing Bridging Finance is our passion.

We benefit from over 10 years experience working within finance in the property industry, including senior finance roles within property development and construction companies, and involvement in a wide range of projects, from mansard roof conversions & basement excavations in London, right up to large multi-unit sites across London and the Southern Counties. We are passionate about finding funding solutions for our clients and use our experience to assist with funding needs for all project sizes throughout the UK.

Customer service is at the heart of what we do, Bridging Finance caters for a wide variety of property projects and we take the time to understand your circumstances and goals before sourcing suitable funding to meet your needs, allowing you to concentrate on what you do best – managing your business!

Don’t just take our word for it, read our Testimonials here

We are a broker not a lender

We are Bridging Finance specialists and we use our expertise to source suitable funding for your property project. We are a broker, not a lender and pride ourselves on transparency. We may be paid a fee or commission by the lender that will vary depending on the lender, product and other permissible factors and these arrangements could affect the price payable by you.

 

A little bit more about Bridging Finance…

What is Bridging Finance?

Bridging Finance is a versatile short-term finance product that plays a central role within the commercial property finance world. Bridging Finance is typically used to literally ‘bridge the gap’ between one style of finance and another or to purchase a property before refinancing with a longer-term loan or development finance.

What can Bridging Finance be used for?

There are a vast number of Bridging Finance products for a wide range of purposes, with some common uses being:

Uninhabitable properties:

For the purchase of uninhabitable properties Bridging Finance comes into its own as it can be used effectively in these instances where other methods of financing can fall short. The use of Bridging Finance for an initial purchase means that the property can then be re-novated and refurbished before it is either sold or refinanced onto a lower cost long-term facility.

Refurbishment Bridging Finance

Some Bridging Finance lenders have specific refurbishment bridge products which fund 100% of the refurbishment costs and also up to 75% of the purchase price. These products are typically for light to medium refurbishments including commercial conversion projects under permitted development rights.

Land purchase with or without planning:

For the purchase of land with planning permission where there is not enough time to arrange a full development finance facility or where a piece of land is being purchased without planning in place, Bridging Finance may be utilised instead. Planning can then be applied for and once gained the site may be sold or refinanced to development finance in order to build the properties.

Development exit Bridging Finance:

When your development takes longer than planned or market conditions mean that your finished properties take longer to sell than expected, Bridging Finance can be used to refinance a development loan and allow a further period of breathing space to sell the completed properties. Bridging Finance may also allow you to release some cash from the completed development, which may help with cashflow or new site purchases. This style of Bridging Finance may also be structured in a way where it allows the borrower to retain some of the cash from subsequent sales, freeing up precious cashflow along the way.

Below Market value purchases:

Bridging Finance can be used for the purchase of below market value (BMV) property transactions. As the amount of the Bridging Finance loan may be calculated using the open market value of the property, it is possible to borrow up to 100% of the purchase price in some cases where the valuation exceeds the purchase price.

Auction purchases:

The use of Bridging Finance for auction purchases is popular because it complements the auction buying process whereby exchange and completion requirements are often more stringent than with a non-auction purchase.

What type of property can Bridging Finance be used for?

Bridging Finance can be used for both residential and commercial properties and covers almost any property type, for example: houses, flats, maisonettes, land, hotels, shops, offices, retail units, industrial units and pubs.

How is Bridging Finance structured

Bridging Finance typically attracts an arrangement fee, and interest paid monthly or deducted upfront from the loan advance to cover the term of the loan, with the entire loan being payable by the end of a pre-agreed loan term. There are typically no early repayment charges on Bridging Finance products which allows the borrower freedom to repay the loan early should they complete the purpose of the loan quicker than expected, although there may be a minimum loan term. Bridging Finance loan terms can typically range from 1 month to 24 months in some cases.

How much can be borrowed using Bridging Finance?

Typically up to 80%LTV (loan to value) or potentially higher with additional security can be borrowed using Bridging Finance.

What is an exit route?

As Bridging Finance loans are for specific short-term purposes you must have a plan in place to repay the loan on or before the end of the term which is known as an exit route.  A clear and viable exit route is a key part of the application process for Bridging Finance.

Disclaimer: ALL FINANCE SOURCED IS FOR BUSINESS PURPOSES ONLY. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. All loans are subject to full lender application, underwriting, valuation and legals.

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Luc Capital Limited is registered in England & Wales under Company No 09251575. Registered Office: C/O Moore (South) LLP, City Gates, 2-4 Southgate, Chichester, West Sussex, PO19 8DJ.

Luc Capital Limited are authorised and regulated by the Financial Conduct Authority (FCA) in respect of our consumer credit-related regulated activities only, specifically this includes our FCA Regulated Credit Broking Services, these are provided where the borrower is acting for business purposes and is an individual or unincorporated partnership of 3 or less partners and the loan relates to purely or predominantly commercial property (61% or more non-residential) that is not intended to be converted to residential property or the loan is a second charge loan secured against a property occupied by a borrower or their relatives. Luc Capital Limited is entered on the Financial Services Register https://register.fca.org.uk/ under reference 771650.

Luc Capital Limited are a credit broker, not a lender and may be paid a fee or commission from the lender that will vary depending on the lender, product and other permissible factors and these arrangements could affect the price payable by you. Luc Capital Limited source commercial finance options from a panel of lenders.

Our aim is to provide you with a professional service that delivers the highest possible standards. However, there may be occasions where you feel this has not been achieved and should you wish to make a complaint about any aspect of the service we provide to you, you can do this by telephoning us on 07886279773 or writing to us via hello@luccaptial.co.uk. If the complaint relates to our FCA Regulated Credit Broking Services: A summary of our internal complaints handling procedures for the reasonable and prompt handling of such complaints is available on request, and If you cannot settle your complaint with us you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 08000234567. If you are unsure about whether you have received FCA Regulated Credit Broking Services from us then please contact us on 07886279773 or at hello@luccaptial.co.uk.