If you are looking for fast, short term funding for a commercial property then a bridging loan may be a viable option for you.
Market leading bridging loans from £250,000 - £5m
Typically, accessing additional finance for commercial property can be difficult as traditional lenders may require large deposits and rigorous income stress tests.
Partnerships are key to successful developments and, as with any partnership, it is important that you set off on the right foot, so it is essential to demonstrate to a potential lender that your scheme is well planned and considered right from when you submit an application for finance. With this in mind, what steps can you take to present a good impression to a lender and help your case to be processed quickly and efficiently. Think about what information you would want to see that would give you the assurance to lend money on a scheme and deliver that information in a way that is clear, transparent and honest.
Provide supporting evidence
The more detail you can provide to support your predictions, the better. Your draft projections, therefore, might include:
Cost analysis of improvement and renovation works
Market comparison of local sale values
Expected occupancy/rental on completion
Demonstrate a track record
Projections are always more compelling when they come with a track record of success. Where you have previously developed residential or commercial property, ensure your portfolio/application reflects your experience. Our bridging partners are able to offer UK development finance individually structured to meet your circumstances. If you can offer some form of additional security, it may make approving your loan an easier or quicker process or enable them to offer a larger sum.
Another key consideration is choosing to partner with a lender that has specialist expertise in property development finance and consequently the knowledge and appetite to be able to approve even complex applications.
A number of new lenders have diversified into development finance only recently, which means they may not have the experience required to be able to arrive at a positive conclusion to a difficult lending decision or are unable to process the loan in the time available.
You can’t always guarantee a positive response to a development finance application, of course, but by choosing to partner with the right lender and following these tips, you can certainly improve your chances.
Please contact me to discuss your requirements in confidence.
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