We were recently joined by Financial Planning partners Prosperity Wealth, who delivered an interesting seminar to a group of Waldrons colleagues talking all things bridging finance. Tom Woodall, Matt Bell, Annabelle Brown and James Carpenter from Prosperity Wealth were greeted by Dennis Thomas, Olivia Davies, Tim Clark, Courtney Stephenson from our Commercial and Corporate Department.
What is a bridging loan?
A bridging loan can be a useful financing option, often used to ‘bridge the gap’ when buying a property before selling an existing one, or providing quick access funds for development projects, purchases at auction and tax payments.
Bridging loans are intended for short-term use that you will have to pay off within 12 months, although the term can be shorter (as short as week or two!). Bridging finance is often used when urgent access to cash is needed and the process from application, approval and draw down is much quicker than a traditional mortgage or loan. A bridging loan is typically secured against property or other valuable assets. They often have higher interest rates and fees, which is why it is important to take advice from a specialist and to plan how you will repay the loan.
What is the process?
Tom Woodall lead the presentation at Waldrons head office and explained the careful procedure undertaken by Prosperity Wealth advisors when exploring bridging finance for their clients:
- Initial Conversations – fact finding by discussing the client’s goals and if they are achievable, ensuring the exit strategy is viable and discussing the costs involved from the outset. Importantly, other possible solutions will be considered here.
- Research – research of the market to select the correct lender for the client’s situation.
- Application – Prosperity Wealth have a dedicated Business Quality Team who will approve the advice given before a suitability report is issued to the client. Once all parties are happy, the application is submitted to the lender.
- Legals – valuations and legals are instructed and it is at this point Waldrons will step in to achieve legal completion of the loan!
If you need to move quickly on an opportunity for your business, such as a property investment, you may consider applying for bridging finance. However, it is important to speak to your financial advisor to explore all options and achieve the best terms possible. Once an offer for finance has been made, specialist lawyers at Waldrons will work with you and your financial advisor to achieve an efficient and successful completion.
Contacts:
Waldrons Solicitors: 01384 811 811 | lawyers@waldrons.co.uk
Prosperity Wealth: 01384 390 039 | enquiries@prosperitywealth.com
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