There may be many reasons why a client may be looking to purchase an uninhabitable property. This may down to finding a property with hidden charm, the perfect location or a great deal has been spotted and your client doesn’t want to miss the opportunity. Whatever the reason may be, it’s great to have bridging finance as a viable option.
A property may be deemed ‘uninhabitable’ by high-street lenders for many reasons such as the overall condition of the property, roofing issues, or there may be no kitchen/bathroom, etc. A bridging facility is merely a short term mortgage which is put in place. Once the light refurbishment has been completed, the property should be considered habitable and free to be re-mortgaged with a mainstream mortgage lender.
Bridging is suited for uninhabitable properties and is most prevalent when clients are looking to purchase at auction. Typically, properties sold at auction require the full payment for the property within 28 days. In this situation, a bridging loan could be the most appropriate option to secure funds quickly. Since residential mortgages take around 8-12 weeks to arrange, there is typically not enough time to get funds in place. Depending on individual circumstances, Greenfield Mortgages can provide additional funds to carry out the necessary refurbishments.
Although most uninhabitable properties that require bridging finance are typically found at auction, this isn’t always the case. For instance, an experienced property developer may spot a great deal but they are still unable to secure a mortgage. If the client has any unencumbered properties in their existing portfolio, their exit may be to sell one or two of these properties to pay off the bridging loan.
We understand each case is unique, our team will always take a solutions-based approach to help achieve the right outcome. Drop a short summary email to Averil@Greenfieldmortgages.com or call our team on 0121 233 1188.