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Bridging Finance for Property Development Projects
Property development is a long process which requires planning and preparation. One of these crucial elements, however, is acquiring funding that will move at the same pace as your project. From acquiring land to converting a building or funding renovation work, sourcing a bridging loan can unlock opportunities where traditional financing is lacking.
What is bridging finance in property development?
Bridging loans are short-term funding solutions designed to “bridge the gap” between your need for finance and a longer-term solution. For property developers and property investors, bridging loans can allow access to capital that will kick-start your project or complete unfinished works within days rather than weeks.
At KSEYE, we offer bridging loans to property developers looking to access capital, and our Business Development Managers are experienced in helping you source funding for your project.
When is bridging finance useful for developers?
There are many touchpoints that a developer will find a bridging loan useful for during their project. Whether you need the funding to start construction or need a cash injection to avoid delays, a bridging loan can be your key to keeping your project on track.
Below, we outline areas where a developer may require bridging finance
Land Acquisition
If you’re struggling to source funding from traditional lenders to buy land for your project, a bridging loan can help you act fast to avoid the risk of your development opportunity falling through from delays.
Planning applications
When you acquire land or property and apply for planning applications, short-term finance can help you hold the asset for a short term while you increase its overall value, also known as a Planning Gain Strategy.
Property Renovation
Whether you need to complete a full property renovation or smaller renovations, this type of funding can help cover the costs to repair a property that would otherwise be rejected by traditional lenders, due to the property not being habitable
Conversions or change of use
If a property was previously used for another purpose, such as a pub or office, traditional lenders rarely offer funding to convert these premises to homes. In these cases, bridging finance offers a more flexible solution.
Off-plan Property
During the build phase, developers sometimes face delays in off-plan sales. When expected revenue from advance sales doesn’t materialise, bridging finance can provide a short-term solution to keep the project moving without compromising timelines.
Why use a bridging loan over traditional loans?
One of the key aspects of bridging loans is the speed of access to the funding and suitability for complex and time-sensitive deals. Traditional lenders will often take weeks, if not months, to approve, and often come with more rigid affordability criteria. This is why bridging loans can be a more suitable solution for accessing funds to help your development project.
Choosing KSEYE for your bridging loan
Our team of BDMs are experienced in helping property developers unlock access to capital to help their project move along. Whether you want to convert an existing building or need to access funds for acquiring land, our bridging loans are tailored to your needs and offer you straightforward, direct access to financing.