The great advantage of a bridging loan is the ability to quickly obtain funds for your project. If you’re looking for funding for apartment conversion purposes, a bridging loan will allow you to commence the process of purchasing, converting or refurbishing the property much faster than normal term finance.
Borrow Up To 100% Of Apartment Refurbishment Costs
Typically, property development finance in the form of a bridging loan can be used for a range of purposes, from property renovations and conversions to capital raising and property portfolio expansion. While it’s common for borrowers to require funding for anything from maximum to 75% LTV, 100% of refurbishment costs can also be borrowed. Some lenders will consider inexperienced clients, but a client with experience will find more favour. Inexperienced clients will be carefully monitored by a Monitoring Surveyor to ensure the apartment build/refurbishment is going to plan. Lenders need assurance that correct planning and building control consent is in place and will insist on costs remaining under control to make sure the project is viable.
Bridging loans for refurbishment projects are also suitable for uninhabitable or derelict properties that are unmortgageable but will be profitable once the work has been completed.