Refurbishment Bridging Loans – What You Need to know
Whether you are planning to renovate an existing property or buy and refurbish a new one, securing the right kind of financing is key. With all of the different funding options available on the market it can be tough to know where to begin and to decide which might give the most benefits in your situation. A refurbishment bridging loan could well be the right kind of financing for you, so here we will look at what these loans are and a few of the advantages to help you make up your mind and start applying for your funding today.
What are refurbishment bridging loans?
As stated, refurbishment bridging loans are specialist loans that are tailored towards developers looking to do up a property, or properties. They are normally separated into light and heavy loans depending on what you need and are planning to do, and the amount you can borrow will vary from case to case. The potential value of the property after the project is completed is taken into consideration when calculating how much you can borrow, as is your credit rating.
A light refurbishment bridging loan is more suitable for you if you are intending to make only small repairs and changes. Though the exact definition may vary slightly from lender to lender it is unlikely to include any structural changes, but rather focuses on aesthetics and other decorating and remodelling including new windows, doors, bathrooms and kitchens.
A heavy refurbishment bridging loan, on the other hand, would be suitable if you were thinking about any structural changes, extensions, building regulations, conversions and anything requiring planning permission. If your project will involve some or all of these things then a heavy loan would be needed, though if your development is on the larger side you may wish to look at development finance instead.
What are the advantages of refurbishment bridging loans?
There are many reasons why refurbishment bridging loans are a sensible way to go for your project, offering the capital you need to buy and renovate your property with an amount based on the potential value of the building and not its current worth. You can also choose the length of your loan, with a shorter term leading to a lower amount to pay back.
It is possible to get a loan without years of experience in the field or the best credit scores, and though the amount and rates available may not be as favourable this means you can still make the small or bigger changes to your property which can greatly increase its value. There is also usually a quick turn-around from enquiry to getting your funds so you can get started right away.
Conclusion
If you are renovating an existing property a refurbishment bridging loan could well be the best solution to your financing needs. Whether you are doing light or heavy work, from a complete overhaul with structural changes to normal decorating and the installation of new furnishings, a refurbishment bridging loan could get you the funding you require. So have a look now at the rates and loans available to you and start making the changes you need to increase your property’s value today.
