In the dynamic world of property development, time is often of the essence. Bridging finance emerges as a pivotal tool, swiftly bridging the financial gaps and propelling development projects toward success.
What Does Bridging Finance Mean In Property Development?
Bridging finance stands as a short-term financing solution designed to ‘bridge’ the temporal financial void during property transactions. Particularly in property development, where speed can dictate success, bridging loans offer a timely influx of capital. These loans typically span a few months to a couple of years, providing the necessary financial thrust for crucial phases of a development project.
Why Bridging Finance for Property Development?
Speed in Transactions:
- Swift Acquisition: Property developers often encounter opportunities that demand rapid action. Bridging finance facilitates quick property acquisitions, ensuring developers don’t miss out on valuable prospects.
Overcoming Property Challenges:
- Unfit for Traditional Financing: Properties in need of extensive renovations or those unfit for traditional mortgages find a lifeline in bridging finance. It steps in when conventional financing avenues face limitations.
- Navigating Planning and Approvals: Development projects sometimes face delays in obtaining planning permissions. Bridging finance offers a financial cushion during these crucial approval phases.
Flexibility in Repayment:
- Tailored Repayment Plans: Bridging loans often come with flexible repayment structures. Developers can strategise to repay the loan when the property is ready for a longer-term financing solution.
Unlocking Property Potential:
- Maximising Property Value: In scenarios where a property undergoes enhancements during development, bridging finance enables developers to capitalise on the increased value of the property.
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Realising Success: AFIG’s Bridging Finance Expertise
Our bridging finance solutions are crafted to empower developers, offering not just funds but a pathway to success. Consider the case of Vision Tower, a project with over 300 residential units in Manchester City Centre. AFIG secured a bridging loan at 85% of the purchase price, along with an equity loan and a fully funded VAT loan from three separate lenders. The result? A successful acquisition within the allotted time frame, allows the client to pursue their intended plans for the site.
Moving Forward with Confidence
In the ever-evolving sphere of property development, seizing opportunities demands financial agility. Bridging finance emerges as a catalyst, propelling projects forward with speed and flexibility. At AFIG, we stand ready to navigate the intricacies of your development journey, providing not just finance but a strategic partnership for success. Unlock the doors to progress—explore the possibilities with AFIG’s Bridging Finance and enquire with AFIG today.