At Market Financial Solutions, we pride ourselves on being able to provide multiple ways forward for our borrowers. Across our product range, we can accommodate first-time buyers through to seasoned portfolio investors.
On this, a broker representing a client with major refurbishment plans, may approach us for a Permitted & Light Development Bridging Loan. The borrower may want to extend a recently acquired pub to include space to serve food, and accommodate more outdoor seating.
But, while this plan may be valid, the borrower’s circumstances may require a more robust option. Our refurbishment bridging loans are primed for this kind of strategy but with a term length of between 3-18 months, it may not provide enough leeway for a new property investor trying to find their feet.
As such, our Bridge Fusion product may be better suited for this type of client. With terms of up to 24 months (plus a discretionary 12-month extension), alongside lower interest rates over the long-term, it can support first-time commercial landlords as they work through their initial challenges.
With Bridge Fusion, this kind of borrower could benefit from a flexible funding solution that would minimise outgoings during the renovation period. To add further flexibility, we could roll up 12 months of interest, easing the client’s cash flow situation, while providing time to complete the work, and raise the value and potential of the property.
What’s more, with no early repayment charge after 20 months, the borrower could look at their exit options in less than two years if their investment proved successful more quickly than anticipated. When the refurbishment is completed, the borrower should be in a better position (with more experience to boot) to secure long-term finance for the exit strategy.
Or, should this not be the case for whatever reason, they could look to sell the pub at a higher price than they bought it, which would also be a suitable option for a Bridge fusion exit.
Further reading:
- Featured Product: Bridge Fusion Loan
- Explainer Video: Bridge Fusion
- Tool: Bridge Fusion Calculator
- Guide: The Complete Bridging Loan Guide
- Blog: Commercial property tax guide – what taxes do investors need to pay and what are the allowances?
- CPD Course: Commercial Property Training Certification
