International Bridging Finance And Its Uses
What Is International Bridging Finance?
International bridging finance — also known as bridging loans — is a short-term property-backed financial instrument for Europe. You can access a wide range of bridging finance rates from over 30 UK lenders and many overseas lenders and investment firms.Banks and lenders usually offer bridging finance for as short as two weeks or a maximum of 18 months. They are commonly used by those who wish to purchase a new home or a piece of industrial or commercial property but do not have ready funds for the transaction.Bridging finance calls for a clear exit strategy to assure the lender that it will be paid off at the end of the stipulated period. These funds for payment usually come from the proceeds of one’s old house or the rent collected from a refurbishment, sometimes funded from refurbishment loans from commercial clients.
On What Occasions Would You Need International Bridging Finance?
Overseas property bridging loans come in handy for individuals under the following circumstances:If you find an ideal overseas property that requires an immediate offer or an urgent sale;The property you’re interested in is under a complex title under local property laws;You cannot access your main financial lenders/partners due to distance; orA long mortgage application with a traditional lender wouldn’t be a practical choice, given the location.
How Does International Bridging Finance Work For An Overseas Property?
Let’s say you paid a substantial deposit on a house or any other piece of property abroad. However, given the challenge of raising finance to pay off the balance in the country where the property is located, you’re in danger of losing that deposit and the property.If you go for an overseas bridging loan, you will have the finance to tide the transaction over. The loan can be secured for a few weeks or months on an existing home or any other UK-based property you have. This runs for the period covering the time between the date of purchase and the maturity date of the endowment.Note that overseas bridging loans can cover up to 75 per cent of a property’s loan-to-value (LTV.)
What Can International Bridging Finance Be Used For?
Most international bridging loans can be used to cover the cost of purchase, construction finance, or refurbishment of any of the following abroad:
Property for residential,
commercial, or mixed-use;
Raw, undeveloped land;
Hospitality venues such as hotels and resorts;
Corporate structures such as office buildings and towers;
Industrial property and/or warehousing facilities;
Build-to-rent property;
Retail structures or enclaves; or
Development exit bridging.
What Should You Look For With International Bridging Finance?
A good bridging loan should work on your terms if you’re using it to purchase, build, or renovate domestic or offshore properties. In this case, it is best to ask for the following details:What is your ideal duration for the loan?How many weeks or months will you take to pay it off completely?What are the borrowing limits stipulated by your lender/lenders?Do your lenders offer flexible interest payments?Do your lenders offer rolled-up interest that you can pay for in one go upon completing the project?Will the interest on your loan be serviced monthly or can you and the lender agree on different terms?
https://www.platinumglobalbridgingfinance.co.uk/international-bridging-finance/
