Adding big money to the value of your home does not have to mean spending big money on big changes. Major structural alterations and extensions are all well and good, though they are beyond the realm of possibility for most.

Making the most of your home’s potential without going to extremes is all about focusing on what matters most too prospective buyers. Get it right, and some real estate experts suggest you could add up to £30,000 to the value of your home.

In particular, there are three simple yet effective modifications to focus on, which collectively can make a huge difference.

Strategic painting

Ask any home staging specialist, and they will tell you the same: painting all of your interiors in neutral colours is the way to go. It is always advisable to create something like a blank canvas, upon which prospective buyers can visualise their own ideal interiors.

Of equal importance is making sure your front door and porch/entrance are in flawless condition. A fresh coat of paint is essential to giving the best possible first impression.

Incredibly, a study carried out by Sellhousefast.uk found that a beautifully painted blue front door alone can add up to £4,000 to the value of a property. Pops of colour like these can work a treat, perfectly complementing the neutral interiors within.

Pristine presentation outdoors

Be mindful of the fact that more prospective buyers than ever before are focusing heavily on gardens and outdoor living spaces. With the painful memories of lockdown still firmly in the minds of most, the freedom to relax and unwind outdoors at home is becoming a top priority.

This means doing whatever it takes to get your gardens, patios, decking, and so on in order. It also means arranging viewings at the right time of day, when your outdoor spaces are basking in beautiful sunshine.

Weed your garden, mow the lawn, and make the whole thing as presentable as you possibly can. Repair or remove anything that isn’t in ideal condition, and prominently present comfortable seating and outdoor dining furniture.

De-clutter intensively

Last but not least, comprehensive decluttering is essential, indoors and out, with the intention of presenting your home as something of a blank canvas for would-be buyers.

The more clutter you have about the place, the more difficult it becomes for visitors to picture themselves living there. They are more likely to focus on your chintz and trinkets than your home and its interiors in general.

If necessary, fork out for a self-storage unit for a few weeks and remove everything that does not need to be there. A small price to pay will improve both the appeal and the potential market value of your home.

Most major banks and high street lenders are unwilling to finance the purchase of uninhabitable properties, which is unfortunate given how investors and other home buyers often set their sights on “fixer-uppers.”

Properties in a poor state of repair often sell for less than their true potential market values, so what types of financing options are available for purchasing uninhabitable properties?

Uninhabitable properties defined

Different lenders have their own unique interpretations of what “uninhabitable” means.

Most will exclusively, however, lend against properties that:

• Are in a good state of general repair.
• Can be considered safe to inhabit in their current condition.
• Have a functional bathroom and kitchen.
• Are secure and in structurally sound condition.
• Have reliable electricity and a central heating system.
• Do not have issues with infestations.

It is not uncommon for the opinions and perspectives of prospective buyers to differ from those of the lender. What you consider to be a perfectly viable property with huge investment potential may be viewed as a major risk and therefore unacceptable by a conventional bank.

Securing the finance needed may mean setting your sights away from the High Street and considering the alternative options available.

Traditional loan alternatives for an uninhabitable property

When a traditional property loan or mortgage is out of the question, a bridging loan represents an accessible and affordable alternative, particularly when it comes to the purchase and subsequent renovation of uninhabitable properties.

With bridging finance, the vast majority of established lenders are willing to lend against a wide variety of property types, including those considered uninhabitable. Unlike a mortgage, a bridging loan is typically repaid within a period of one to 18 months, often when the renovations have been completed and the property has been sold or transferred on to a longer-term mortgage product.

One of the most appealing aspects of bridging finance is that when the funds borrowed are repaid promptly, overall borrowing costs can be highly competitive. Often charged at less than 0.5% per month, a short-term bridging loan can be exponentially more affordable than a conventional mortgage.

How is bridging loan eligibility determined?

Eligibility for a bridging loan is assessed primarily on the viability of the property used to secure the loan. Additional factors such as income level, financial status, and credit history may be taken into account, though these are typically secondary considerations.

Importantly, applicants are expected to have an acceptable ‘exit strategy’ in place. This means providing evidence as to how and when they intend to repay the loan, such as when the renovations are complete and the property is subsequently sold.

Bridging finance can also be useful in time-critical situations, such as when looking to purchase a property at auction. Depending on your requirements and the strength of your application, it is possible to secure the funds you need within a matter of days.

For more information on any of the above or to discuss finance options for purchasing uninhabitable properties in more detail, contact a member of the team today.

Bridging finance has been growing in popularity across the UK for some time. But what is particularly interesting is how more senior borrowers (of retirement age and older) are taking an interest in bridging loans than ever before.

Despite the fact that seniors are considered more financially savvy and asset-rich than their younger counterparts, they are often rejected by major lenders for even the simplest financial products. The reason is that, as their long-term earning potential is lower and they may have no formal proof of income, they fail to meet the most basic checks carried out by mainstream lenders.

As a viable and cost-effective alternative, short-term lending is attracting the attention of seniors in record numbers. Issued primarily or exclusively on the basis of security, short-term loans like bridging finance can be quicker, easier, and less stressful to arrange.

Popular uses for bridging finance

Seniors (and those over 50) are generally considered to be more financially experienced than all younger demographics. Therefore, they are able to see the potential value of bridging finance that goes far beyond any comparable mainstream loan.

While bridging finance can be used for almost any purpose, several common trends have been identified in the spending patterns of seniors taking out such loans.

The most prominent of which are as follows:

• Purchasing a second or even third home to be fixed up and subsequently sold for profit.
• Buying a property at auction (to renovate or relocate to) at a price well below its market value.
• To cover the costs of extensive home repairs or renovations before relocating or downsizing.
• Buying flats or houses to let out to tenants to generate long-term, regular income.
• Taking advantage of investment opportunities (shares, forex) under the advisement of experienced traders.
• Home improvements before relocating.

Perhaps the single most popular use for bridging loans among seniors is carrying out home improvements and alterations before relocating. Whether you are downsizing or looking to upgrade to a superior property, it simply makes sense to get the best possible price for your current home.

Quite often, a few enhancements here and there (funded by a bridging loan) can significantly boost the property’s market value, enabling the loan to be repaid in full and making a generous profit when the sale closes.

Seniors often make the decision to move to more desirable locations or simply wish to be closer to family and friends upon reaching retirement. If the property proves difficult to sell for a decent price due to its state of repair, strategic use of bridging finance really could make all the difference.

Independent broker support

If you are considering bridging finance for any purpose and would like to ensure you get the best possible deal, independent broker support is essential. An established broker can conduct a whole-of-market search on your behalf while ensuring your requirements are met with an appropriately affordable and flexible deal.

For more information or any of the above or to discuss bridging loan applications in more detail, contact a member of the team at Bridgingloans.co.uk today.

Bridging finance is a short-term loan, typically arranged within a matter of days and repaid after a period of one to 18 months. As the name suggests, bridging loans are designed to ‘bridge’ financial gaps when significant sums of money are needed for urgent purchases or investments over the short term.

When might bridging finance be useful?

As a property investor or developer, there are instances in which a bridging loan could be the ideal financial product. Examples of these include the following:

Buying a property at auction with the intention of renovating and selling it at a profit

Using bridging finance to cover various project expenses, subsequently repaying the loan when the property is sold or refinanced

Any property development business encountering a period of limited cash flow could use a bridging loan to ‘bridge’ this temporary shortfall.

Bridging loans can also be secured against all types of properties (including dilapidated and uninhabitable properties), which major banks may refuse to finance.

What is the difference between a closed bridging loan and an open bridging loan?

The difference between open and closed bridging loans is whether the borrower has an exit strategy in place. If you know exactly when and how you will be repaying your loan, you can apply for a closed bridging loan with a fixed repayment date. If there is still some uncertainty as to your repayment plan, you can apply for an open-bridging loan with no exact fixed repayment date.

Closed bridging loans often have more competitive rates of interest and lower overall borrowing costs.

When does it need to be repaid?

An agreed-upon repayment date for the loan will be agreed upon with the lender during the application process. Typically, property development bridging finance is repaid when the property being financed is sold, let out, or moved onto a longer-term loan or mortgage.

How much does it cost?

Interest rates and overall borrowing costs vary in accordance with the requirements of the borrower and the policies of the lender. Monthly interest rates on competitive property development bridging finance start at less than 0.5%. The quicker you pay back your loan, the more you save.

Who is eligible?

Eligibility is assessed on the basis of the applicant’s current financial position, property development track record, and the nature and viability of the proposed project. The property they wish to secure the loan against will also be considered, as will their credit history and income level.

Maximum loan-to-value ratios of 80% or more are available with residential properties, though lenders often restrict themselves to 70% for commercial properties. If you have any questions or concerns regarding your eligibility or would prefer a loan with a higher LTV, discuss this with your broker before applying.

What additional costs apply with property development bridging finance?

Additional fees and levies vary from one lender to the next. Depending on whom you work with, your property development loan could be subject to administration fees, arrangement fees, completion fees, valuation fees, legal fees, security fees, early repayment fees, and so on.

How quickly can I access the funds I need?

It is often possible to complete the application process and access the money you need within a matter of days. Bridging finance provides an ideal alternative to complex and drawn-out property loans and mortgages when time is a factor.

Accelerating the process is simply a matter of ensuring you have all the documentation you need and can verify both your credibility and the viability of your project. All of which can be simplified with professional broker support.

Can I get a property development bridging finance with bad credit?

If your project is viable, your track record is exemplary, and your credit status is sound, poor credit need not stand in the way of competitive property development finance. Some bridging lenders are more than willing to take all aspects of their applicants’ cases into consideration, rather than basing their decisions purely on credit scores. It is essential to strategically target lenders who welcome poor credit applicants.

How much can I borrow for a property development project?

Theoretically, there are no limits in terms of how much you can borrow. Bridging finance for property development is generally available in sums starting from £75,000 and up, though with no upper limits. Eligibility and maximum loan allowances are calculated in accordance with the applicant’s financial situation, requirements, and proposed use of the funds.

How can I find out more about property development bridging finance?

Whether you have decided to go ahead or are simply considering a bridging finance application, it pays to consult with an independent broker ahead of time. Along with helping you understand the various options available, an established broker can ensure your applications are submitted only to the most appropriate lenders.

For more information or to discuss the potential benefits of property development bridging loans in more detail, contact a member of the team at UK Bridging Loans today.

Being hit by an unexpected tax bill is never an enjoyable experience. Businesses, investors, and property developers may find themselves facing tax obligations at a time they didn’t expect. Irrespective of the nature and extent of the bill, settling tax liabilities as quickly as possible is essential in order to avoid serious legal consequences.

When time is a factor, bridging finance can be the perfect solution to settling tax obligations in a quick, convenient, and cost-effective way.

Expecting the unexpected

Most tax bills are completely predictable and can be budgeted for. Businesses and investors are therefore expected to conduct their financial affairs responsibly in order to ensure their ability to meet their tax obligations when required.

Nevertheless, there are various instances where even the most responsible organisations and individuals encounter demanding and difficult situations. For example, anyone inheriting an estate with a value in excess of £325,000 will need to pay inheritance tax. Capital gains tax is also payable when selling capital assets, such as properties.

One of the most common instances where specialist types of bridging loans are used to cover tax payments is when a commercial property is purchased. When a business or an investor buys a commercial property, they are liable for an additional VAT payment of 20%. This could amount to tens of thousands of pounds on top of the purchase price of the property, alongside all other fees and outgoings.

Companies that are VAT-registered can reclaim this money, but not until the current VAT accounting period comes to an end. This means waiting up to three months for the VAT refund, during which the buyer must contend with a significant shortfall.

If it is likely that this 20% VAT payment would have negative implications for the buyer, they could take out a short-term bridging loan to augment it. After which, the balance on the loan could be repaid in full (plus a small interest fee) when the VAT is returned, ensuring their cash flow isn’t adversely affected for the duration.

Bridging loan eligibility

The potential benefits and applications of bridging finance are limitless. Establishing eligibility for a bridging loan can be surprisingly simple, starting with a bridging loan calculator to get an idea of the available options.

Bridging finance can be secured against almost any type of property, with no specific limitations on how much can be borrowed. In addition, a bridging loan can often be accessed within 2 to 5 working days, making it the ideal option for covering urgent outgoings and unexpected bills.

Even with an imperfect credit history, there is still every chance you will qualify for a bridging loan if you can provide security to cover the balance in full.

For more information on the benefits of using bridging finance to pay urgent and unexpected tax bills, book your obligation-free consultation today with a member of the team.

Property development financing is available in a variety of forms to suit most requirements and budgets. Increasingly, bridging loans are being sought by property developers across the UK to fund large and small projects.

But what is it about the bridging loan that makes it such a popular choice? Why are more investors choosing bridging loans over conventional property development finance than ever before?

Here are some reasons:

• Bridging loans are fast: Bridging loans are one of the fastest-access lending streams available for property developers. From application submission to provision of the funds, it can take as little as 3 to 5 working days, making it an ideal option when time is a factor.

• Bridging loans are flexible: Most bridge loans are tailored to suit the exact requirements and budget of the borrower. Along with flexible repayment terms, it’s also possible to qualify for a bridging loan with a poor credit history, due to bridging finance being far more flexible than more traditional mainstream loans and because monthly payments are rarely required.

• Bridging finance can be used for almost anything: Although most often used for a property purchase, a bridging loan can be used for almost any legal purpose. In addition, it’s also possible to secure a bridging loan against almost any type of property or land, provided it covers the total cost of the loan with sufficient excess.

• Competitive borrowing costs: Bridging loans are short-term loans designed to be repaid within a matter of months rather than years. Interest rates start at below 0.5% per month, coupled with minimal overall borrowing costs. Early repayment is also usually an option with bridging loans without facing heavy penalties or levies.

• Auction property purchases: One of the most common applications for bridging loans in the property development sector is for the purchase of auction properties. The funds required to purchase a property at auction can be made available quickly, with the loan subsequently being repaid in one lump sum when the property is sold or refinanced.

• Purchasing uninhabitable properties: Many mainstream lenders will only issue loans against properties that are considered habitable at the time of the application. With bridging finance, it is possible to secure a loan against an uninhabitable property with the intention of renovating or redeveloping it.

• No deposit is required: Another benefit of bridging finance is that no physical deposit is often required to set up the loan, as additional security can be used to cover this. Eligibility is determined primarily by the value of the property or land used to secure the loan.

For more information on the benefits of bridging loans as a form of property development finance, contact a member of the team at UK Property Finance anytime.