Complex made easy

BRIDGING & DEVELOPMENT

ULTIMATELY BRIDGING FINANCE CAN BE SOURCED FOR NUMBEROUS REASONS WHETHER IT BE AN AUCTION PURCHASE, REFURBISHMENT PROJECT OF EVEN A COLLAPSE IN A CHAIN

Bridging & Development

Ultimately when sourcing bridging finance for whatever reason – whether it be an auction purchase, refurbishment project or even a collapse in a chain, here at VIBE we understand that speed really can be of the essence and we can, and we will deliver on our promise to make sure we do all that we can in securing our clients finance as quickly as is possible working closely with our lender partners to ensure a speedy completion.
  • Fast turnaround
  • No early settlement fees
  • 1 to 24 months
  • Commercial and residential properties
  • Light, medium and heavy refurbs
  • Conversions (including commercial to residential)
  • Interest roll up, retained or serviced
  • Up to 80% LTV (100% if additional security is offered)
  • Market leading rates

VIBE specialise in all areas of bridging finance, working with our lender partners who commit and are proven to move quickly in order to meet auction deadlines.

AUCTION LOANS

Finance for auction finance properties need to be arranged within a short time scale, more often requiring the use of specialised auction finance or bridging loans.

Our lender partners understand the importance of speed, communication and individual pricing.

Funding can be arranged either before or after the auction, giving you further flexibility and peace of mind when bidding on a property.

Auction Term Exit

If you are intending to retain the property you are arranging the auction finance bridging loan, we are able to process a term exit loan application at the same time as your short term finance loan application enabling you to pay off the bridging finance as quickly as is possible and most importantly giving the you and the lender peace of mind.

DEVELOPMENT FINANCE
Fast turnaround
1 to 24 months for refurbishments (up to 36 months for development)
Commercial and residential properties
Light, medium and heavy refurbs
Conversions (including commercial to residential)
Ground up developments
Interest roll up, retained or serviced
100% of cost of works funded by the lender
Lending up to 90% loan to cost
First time developers considered
Pre-planning
Stage drawdowns available
Competitive pricing
DEVELOPMENT EXIT LOANS

Development Exit Loans are ideal for property developers who require funding to either start or exit a recent project. 

 

Loans are available for up to 18 months to developers across all UK regions with the intention of refinancing development funding on practical completion whilst the properties are marketed for sale.

FAQs

What is a bridging loan?

A bridging loan is a short form loan secured against property, either residential or commercial. The traditional bridging was used to complete when a property purchase chain had broken down however, more recently the variety of purposes where bridging loans are used have increased over the years as more lenders have entered the market.

 

Our expert short-term lending advisors at VIBE are able to arrange bespoke bridging facilities for our clients as well as the exit loan where required giving our clients the piece of mind of having an exit option set up prior to completion.

What is development finance?

Development finance is a short-term loan used to fund building projects that can range from a single property to a large scale development of multiple houses or apartments.

 

The loan is usually geared around the gross development value (GDV) which is the end value of the project.

 

You will be expected to put some of your own funds into the project – typically around 35% (unless additional security is being offered) however lenders can often provide 100% of the development costs up to a percentage of the GDV which is normally around 65%-70%.

 

Funds are released in stages (drawdowns) which the lender will agree with you at the outset as part of their development appraisal.

 

The interest on development loans can be rolled up or serviced monthly and the loan can be repaid by the sale of the units at the end of the development, or by refinance of the debt on to a long term loan if the intention is to retain and let the properties as an investment.

Can I obtain the lowest rate and a quick completion?

In most instances, those lenders offering the most competitive short-term bridging rates are not the quickest.

 

As more often than not, speed and rate do not come hand in hand – we will always discuss this at the outset with our clients to discuss their individual priorities and requirements.

My project requires a planning application - does this matter?

Our lender partners understand that many projects may require a change of planning.

 

If the full planning is not in place for the project prior to completion of the loan – the lender will put in place a bridging loan initially and once planning has been granted they can switch you to their development finance (if required where they are also funding the works)

Do the lenders solicitors offer Dual Representation?

Some of our lenders do offer Dual Representation on legals where their solicitor will not only act for them as a lender, but also the client as well. 

 

This can significantly reduce completion timescales as there is not an added legal party involved.

 

Our VIBE Advisors will discuss this with you at the outset.

 

If you are using your own legal representation – we would always recommend you instruct a solicitor that specialises and is experienced in bridging finance as some of the longest delays can be with a clients solicitor who is not familiar with short term finance.

If I’m creating a new residential dwelling within an existing property, do I need a warranty?

If the property did not have planning consent for residential initially then Yes. For financing purposes a new build homes warranty will be required to secure the best rate and gearing.

 

We do have lenders that will consider without a warranty but they may cap the LTV accordingly, charge a higher rate and insist on an indemnity policy to be put on risk, all at extra cost.

How quickly can I raise funds on a bridge?

We have some lenders on our panel that can complete within 5 working days. However, your rate will be slightly more expensive if you require speed.  Average timescales for bridging loans is typically between 4-6 weeks.

 

At VIBE we take our time to really get to know our client’s requirements so that we can approach the most suitable lender(s) to obtain the appropriate finance.

What information do I need to provide up front for indicative terms?

As a minimum you will need;

 

  • A development Appraisal
  • CV detailing your property experience in similar projects
  • Full Security Address
  • Planning Permission details (if available)
  • Breakdown of cost of works for the project to include professional fees (if applicable) and contingency
Do you have lenders that will lend to first time developers?

Yes. We may need some more detail on the experience of your main contractors, but we have lenders on our panel that will consider ground up development funds for first time developers.