Bridging Loans
- About Us
Bridging Loans with Bate & Albon
Here at Bate & Albon, we specialise in bridging loans. In this niche area of law, our solicitors can help borrowers and lenders alike to complete their loans as quickly as possible. Our expertise in this area means clients across the UK have turned to us for support and legal advice on a range of bridging loan projects.
What is a bridging loan?
Bridging loans, offered by smaller, flexible lenders, are short-term secured financing solutions commonly used to ‘bridge’ gaps in funding. They provide immediate access to funds for usually 6 to 12 months until a permanent financing solution, like a mortgage, is secured or the existing property is sold. Unlike high-street banks with lengthy processes, bridging loans offer faster access to capital, ideal for projects needing quick payment turnaround.
When looking into a bridging loan, considerations to take into account include the purpose of the loan and the higher costs it can incur compared to mortgages. Borrowers must establish a solid exit plan to ensure timely repayment. Lenders outline specific requirements during the application and underwriting process, emphasising the need for review with a broker and solicitor. Upon receiving a formal offer, completion typically takes 2-4 weeks post-compliance approval.
What is a bridging loan?
What is the purpose of bridging a loan?
From homeowners to corporate clients, bridging loans present a unique opportunity in a broad range of scenarios. Examples include:
- Securing the purchase of a property before the sale of another
- Purchasing a property not suitable for a high-street mortgage
- Completing an auction purchase within the contractual deadline
- Finishing off refurbishment works and/or minor developments
- Refinancing and/or consolidating existing unsecured debts
- Funding lease extensions
- Raising capital for urgent payments or expenses such as taxes
Whether you’re looking to renovate your home, you’re a landlord or investor seeking capital for your next project, or a retired couple looking to move quickly, these loans can be a good choice to generate the funds you need at the pace you want.
Borrowers need solid advice and support to navigate the bridging loan landscape and common pitfalls, and that’s where our experts can help.
- Our Services
Which types of bridging loans do we cover?
Bridging loans for auctions
Buying a property at auction can feel like a whirlwind. From bid to purchase, there’s not much time in between, and it’s these tight timeframes that can catch buyers out. A bridging loan can be approved and in place within the auction payment window, which is advantageous if you don’t have all the capital upfront.
Bridging loans for refinancing
If you have a mortgage loan that is coming to the end of its term, you can take out an additional loan to pay your existing loan. This is similar to re-mortgaging but using a bridging loan instead for refinancing purposes.
Bridging loans for lease extensions
Bridging loans are an option used to fund lease extensions, with the goal to sell the property before the end of the bridging loan term.
Bridging loans for development finance
For developers and investors looking for a short-term funding option, a bridging loan can help with residential or commercial development or purchase costs. This is useful in covering the initial stages of development, including land acquisition or construction costs.
These loans are specifically tailored to cover the initial stages of development, including land acquisition, construction costs, and other associated expenses.
It’s important to be mindful of interest rates and fees. Talk to our team to find out more.
Why should I get legal advice for a bridging loan?
When purchasing a property, all buyers must have legal representation, and generally, the buyer must have different representation to the lender. Borrowers often underestimate the timelines involved and the budget required for the legal process, as well as the strict ID requirements.
Our skilled team at Bate & Albon have years of experience dealing with a broad range of bridging loan projects. We’re here to protect you, helping you with due diligence and meeting the conditions of the loan. We can assist with any query, concern, or obstacle, pointing you in the right direction and providing sound legal advice at every turn.
When choosing a legal team, you need straight-talking, dedicated lawyers that offer a specialist service and sound advice. Talk to us today about your bridging loan needs.
Our bridging loan specialists have over 10 years of experience working with a wide variety of bridging finance circumstances and projects. The list of areas we cover is not exhaustive, and we have extensive knowledge across many different aspects of bridging loan law.
My bridging loan query isn’t listed on this page, can you help?
- Meet the Team
Who handles bridging loans at Bate & Albon?
Harry Tuke is our bridging loan expert here at Bate & Albon, with over 10 years of experience in this area of law. He works with clients nationwide, and can visit clients for face-to-face meetings by arrangement in the South-East region.
Having steered many borrowers through the bridging loan landscape, he has helped get commercial and non-commercial projects off the ground, liaising with brokers and mortgage lenders alike. To find out more about Harry, visit his profile.
Or contact Harry to discuss your bridging loan project.
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Need to Speak to us?
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Contact one of OurBridging Finance experts
Additional Resources
Bridging loans are a largely unregulated area, but there are organisations that provide useful industry information. These include:
FIBA: https://www.fiba.org.uk/
Bridging Loan Directory: https://bridgingloandirectory.co.uk/
Bridging and Commercial: https://bridgingandcommercial.co.uk/
- Where are we?
Commercial Property Solicitors in Brighton, Chichester, Eastbourne & Worthing
As a firm based in in East and West Sussex, Bate & Albon are specialists in our local property landscape. We make it a priority that you and both parties receive full clarity and premium service when it comes to business premises and commercial property. Our highly professional team of legal experts ensure that you and your property are in safe hands.
Looking for a solicitor to help you with your property? Contact Carl Bate to see how we can help you with your matter.