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Do you know more than 50% of the households in the Uk have renovated their homes?
It’s a big number and shows how big the renovation industry is.
That brings us to the need for money to finance the refurbishment. You know that every property has to face the wrath of time, and wear and tear happens with time.
Thus, you need bridging finance to keep your home as you desire. If you want to renovate your home, this article is for you.
We have covered how bridging finance can help you renovate your home or commercial property.
Bridging Finance for Property Renovation:
Bridging Finance for Property Renovation:
Swing finance or bridging finance is a short-term loan that helps you refurbish or renovate your property.
Most bridging loans help you renovate or refurbish homes, offices, or real-estate entities. They are easy to get, so if you are planning for light or heavy refurbishment.
The term bridging comes from the fact that you don’t have the money to plan renovation, and the bridging loans provide that money. That’s why these loans are called bridging loans.
Most property developers or investors typically buy cheap, run-down properties and refurbish them to increase their value. So, the buy-renovate-sell is the model they stick to very often.
Since most people lack the funds to get started, you must look for instant finance to start projects quickly. The P2P lending platforms can be a good option for searching for the perfect lender.
So, whether you are looking for a light refurbishment or a heavy one, you need a swift bridging loan to get your hands on refurbishment.
5 Facts of Bridging Loans that help in Property Renovation:
5 Facts of Bridging Loans that help in Property Renovation:
These five facts would help you know how bridging loans are the best option for real estate investors and individual homeowners.
Swift Access to Loans:
Swift Access to Loans:
The property market is fast when it comes to buying and selling property. As in the house renovation market, most people go into it because they want to convert their warehouse into flats or refurbish an uninhabitable building.
As renovating and selling the house would take time, you need bridging finance to get money rolling into your accounts. It would then simplify the process and help you scale up easily.
Easily Available:
Easily Available:
High street lending is often super-difficult when you need more credentials that prove exciting for the lender.
Also, the economics does make a lot of sense when your loans are rejected because the banks won’t take a bid on you for bad loans.
So, if you have a bad credit history or have struggled to repay loans, you can shift to bridging finance to renovate your house.
It’s easily available with an alternative finance lender. If you prepare complete documentation, you may approve your loan in a couple of days.
Assists in Property Development:
Assists in Property Development:
The biggest edge of bridging loans over other lending options is that you can get them to finance your property development. Obviously, you need to put some property as collateral.
However, you may need a steady flow of revenue that helps you through different stages of renovation. With that in mind, a bridging loan is a suitable option.
At the end of the term, you can repay the loan by selling that property and earning reasonable profits.
Make Valuable Investments:
Make Valuable Investments:
Suppose you are a property developer who seeks different profitable opportunities to invest in and generate high-income revenues.
While searching, you may find an old building in an auction and think it has potential. The problem is you need cash to win that auction and develop that project.
High street loans simply aren’t an option because they are hard to get. So, bridging loans would help you fund that auction and start the refurbishment project.
Uses Every Type of Property Collateral:
Uses Every Type of Property Collateral:
The best thing about swing loans is that they can take up any type of property as collateral.
Even if the property against which you have secured a loan is in a poor state, you can use it for bridge lending.
Mortgage lenders won’t value any derelict and uninhabitable building and would refuse to provide you with loans.
Thus, bridging loans are more intuitive and consumer-friendly regarding renovation and refurbishment.
Final Words:
Final Words:
Renovation always comes with time. As a homeowner, you would know that your house needs some necessary changes with time.
So, for example, if a new addition to the family may bring joy to the parents, but at the same time brings the necessity to provide space to the child.
Overall, there will be left room available for others. So, you sometimes need to overhaul the structure to create more space because houses in the UK aren’t constructed with much long-term wisdom.
This argument holds water in the case of property investors who don’t want to live in the building but want to sell it or use it as buy-to-let property.
In both cases, you need bridging loans to quicken up your renovation and sell the property in the market.
In this article, we have covered alternative finance to help people to renovate properties. If you have gone through it or have any questions, let us know in the comments.
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