Land Bridging Loans
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Why Choose Us
Why Choose Us
Navigating the realms of property finance can be complex, but Ascot Mortgages, your dedicated broker, is here to guide you through the myriad options available without any hidden fee. In the diverse landscape of lending, land bridging loans have emerged as a versatile solution for many borrowers. These loans are specifically tailored for individuals and companies seeking to secure finance for land transactions.
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Written by:
Phil Greenwood
Ascot Bridging Expert
Last Updated:
07.10.2023
Written by:
Phil Greenwood
Ascot Bridging Expert
Last Updated:
07.10.2023
How can Land Bridging Finance be used?
Land bridging finance is a multifaceted tool, with applications spanning a range of scenarios. Whether you are an individual, a developer, or a commercial entity, this type of loan can provide a bridge to meet your financial needs. Here are some common use cases:
- Land Purchase: Acquiring land for development, whether residential or commercial.
- Planning Permission: Securing funds to navigate through the planning permission phase.
- Development: Financing the initial stages of construction before securing a long-term mortgage.
- Auction Purchases: Swiftly accessing funds for buying land at auction.
Key Features of Bridging Loans for Land:
Bridging loans for land are characterized by several distinctive features that cater to the unique needs of borrowers. Some of the salient features include:
– Speed: Quick approval and fund disbursement.
– Flexibility: Customizable repayment terms and loan amounts.
– Short-term: Typically designed for temporary financial needs.
– Interest Rates: Competitive rates to manage borrowing costs.
– Security: The loan is usually secured against the land or another property.
Lending Criteria for Land Bridging Finance
To avail of land bridging finance, borrowers need to meet certain lending criteria set forth by the lender. These typically include:
– Valuation of Land: A professional assessment of the land’s market value.
– Exit Strategy: A clear and viable plan for repaying the loan.
– Loan-to-Value (LTV): The proportion of the land’s value that can be borrowed.
– Borrower’s Profile: Assessment of credit history, financial stability, and experience, often assessed by a broker.
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Advantages of Land Bridging Finance
Opting for land bridging finance comes with a host of advantages:
- Speed: Rapid access to funds for time-sensitive land purchases.
- Flexibility: Tailored solutions that align with individual borrower needs.
- Opportunity Realization: Enabling borrowers to seize time-limited investment opportunities before they die out.
- Short-term Solution: Ideal for fulfilling immediate financial requirements while arranging long-term finance.
Disadvantages of Land Bridging Finance
While land bridging finance offers numerous benefits, borrowers should also be cognizant of potential downsides:
– Cost: Can be more expensive than traditional financing options, with additional broker fees.
– Risk: Potential risk of property repossession if the loan cannot be repaid.
– Dependency on Exit Strategy: The success of the loan is heavily reliant on a sound exit strategy.
Does the Land need to have Planning Permission?
For land bridging loans, having planning permission can enhance the appeal of the application. However, it is not a strict prerequisite. Loans can be secured for lands both with and without planning permission, depending on the lender’s criteria and the borrower’s exit strategy.
Loan-to-Value (LTV) for Land Bridging Finance
The LTV for land bridging finance typically ranges between 50% and 70%. However, this can vary based on the lender’s policies, the nature of the land, and the borrower’s financial standing.
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Ascot Mortgage Expert
Remortgage
Remortgaging is applied when you keep
living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.
Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.
Loan Duration for Land Bridging Finance
Land bridging loans are inherently short-term, generally ranging from 3 months to 24 months. The duration is influenced by the borrower’s needs, the development timeline, and the lender’s terms.
Information Required for a Land Loan Application
Applying for a land loan necessitates the submission of several key pieces of information:
– Details of the Land: Location, size, usage, and valuation.
– Purpose of the Loan: Clear articulation of the intended use of funds.
– Exit Strategy: Comprehensive plan detailing how the loan will be repaid.
– Financial Documentation: Evidence of financial stability and creditworthiness.
Types of Land Purchased in the UK
In the UK, the types of land purchased using bridging finance are diverse, encompassing:
- Residential Land: For the development of houses, apartments, and other dwellings.
- Commercial Land: Land intended for business premises, retail spaces, and offices.
- Agricultural Land: Land used for farming and agricultural activities.
- Mixed-Use Land: Combining residential, commercial, and/or agricultural uses.
In conclusion, Ascot Mortgages offers a gateway to the world of land bridging loans, guiding borrowers through every step of the journey. Whether you are looking to purchase, develop, or secure planning permission, our team of broker experts is here to help you navigate the options and find the perfect solution tailored to your needs without any unnecessary fees.
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FAQ
01/ Can I apply for a land bridging loan if I already have a mortgage on another property?
Absolutely, having a mortgage on another property does not preclude you from applying for a land bridging loan with Ascot Mortgages. We assess each application based on its individual merits, the viability of the project, and your ability to repay the loan.
02/ Are there any restrictions on how I can use the funds from a land bridging loan?
Generally, land bridging loans are versatile, and there are few restrictions on usage. The funds are typically utilised for purchasing land, securing planning permission, or starting development. However, it is essential to clearly state the purpose of the loan in your application and discuss it with our team at Ascot Mortgages to ensure compliance with UK regulations.
03/ What happens if I cannot repay the land bridging loan on time?
If you anticipate difficulties in repaying your land bridging loan on time, it is crucial to contact Ascot Mortgages at the earliest opportunity. We are committed to finding a resolution and may discuss options such as restructuring the loan or exploring alternative financing solutions, all in accordance with UK lending practices and regulations.
04/ Can I extend the term of my land bridging loan if needed?
Extensions of the loan term may be possible, subject to an assessment of your circumstances and the reasons for the extension request. Ascot Mortgages evaluates such requests on a case-by-case basis, ensuring alignment with UK lending guidelines and the borrower’s capability to fulfil the revised terms.
05/ Will I need a solicitor to obtain a land bridging loan?
Yes, employing a solicitor is a requirement for obtaining a land bridging loan as it involves legal processes such as land transfer and securing charges on the property. A solicitor will ensure that all legalities are correctly managed and that both parties’ interests are protected, in adherence to UK property law.
06/ Can I use a land bridging loan for property development purposes?
Certainly, one of the common uses of land bridging loans is for property development. Whether you are commencing a new build, renovation, or securing planning permissions, Ascot Mortgages can tailor a loan to suit your specific development needs, in compliance with UK financial regulations.
07/ Are there any age restrictions for obtaining a land bridging loan?
Applicants for land bridging loans typically need to be at least 18 years of age. However, some lenders, including Ascot Mortgages, may have additional age-related criteria depending on the loan type and term. We recommend discussing your individual circumstances with our team to ascertain eligibility. For any additional questions or tailored advice, please do not hesitate to reach out to our dedicated team at Ascot Mortgages, and we will be happy to guide you through the process.
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Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £399 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £879 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
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