Market Value Bridging Loans
Market value bridging loans exist because most high street and buy-to-let lenders lend against the lower of the purchase price or open market value of the property, as determined by the bank instructed valuer. This is no use to a property investor looking to buy a property at below market value and does not have the available funds to contribute the typical 25% deposit.
The majority of bridging loan lenders lend on the same basis or 90 and 180-day forced sale value. This means an investor will have to contribute a higher deposit in order to make the purchase or risk losing the below market value opportunity.
Fortunately, we can help you access the small number of bridging lenders with the flexibility to offer 100% bridging finance subject to a maximum 75% loan-to-value, a strong underlying asset, experienced applicant and credible exit strategy.
For bridging to work, you need to buy at a genuine discount to the property’s true current value and/or forcibly add value to it through conversion or refurbishment over a short period of time.
Email or call us if you need to organise a bridging loan quickly to purchase a discounted property that you plan to flip or refurbish. We have access to dozens of bridging lenders and a big part of what we do is to ensure your application reaches the right funder that offers bridging terms tailored to suit your needs.