Generally speaking, the minimum loan size is over £100,000. The maximum loan size will depend on a number of factors, particularly the value and strength of the asset being used as security. The normal loan to value (LTV) is 70% ... of the open market value, however, some lenders can offer up to 80% for residential properties.Hypothetically speaking, for the right project with the right assets backing it, no loan size is too big.
A bridging loan is, by definition, a short-term loan. Bridging loans are most often taken out for between 3 and 12 months. However, it is not uncommon for bridging loans to be extended to 24 months in some circumstances. ... It should also be noted that regulated bridging loans are limited to a period of 12 months due to (Financial Conduct Authority) FCA regulations. A bridging loan is said to be unregulated if the borrower or a borrower’s family member will not be residing in the subject property.It’s also important to note that unregulated lenders are unable to offer regulated bridging loans.
Bridging loans are most commonly secured against property or land via a first, second, or equitable charge.A first charge is usually used if the property has no existing loans or mortgages secured against it or if the ... existing lender is being cleared using all or some of the proceeds of the loan. Additionally, a second charge loan could be secured against a property if sufficient equity exists. A second charge is used when there is an existing charge that is not being cleared by way of the bridging loan.An equitable charge is most commonly used when dealing with banks that do not wish to grant a second charge. It’s the most expensive option because it does not require the consent of any of the legal charge holders to be used.
The strength of the asset or assets that you are using as security is another very important bridging loan lending criteria.Most lenders prefer property and land as security assets. The strength of each asset is determined ... by what type of asset it is (residential, commercial, land, etc.), the quality of the building or land, its commercial success and revenue, whether it’s liquid and can be sold relatively easily and quickly, its location, and its future prospects and opportunities, among other things.
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