High value bridging finance is a specialist and technical market, encompassing loans that generally start from £1M upwards and are often sophisticated and complex. Large bridging finance loan facilities are increasingly being used by High Net Worth individuals. As private banks and traditional lenders have scaled back lending, especially where a property requires substantial work, a small number of bridging finance providers are still prepared to lend in this space.
The Central London property market is still the source of many larger bridging loan enquiries, often with very high value single unit properties being offered as security. The number of well-funded specialist lenders prepared to look at deals up to £25M has reduced but there are still some with an appetite for these deals.
Certain lenders in this space have an appetite for a particular class of property. Whilst rates on such large deals can still be quite competitive, despite limited lender options, loan to values (LTV) are generally more restrictive, reflecting the greater volatility and difficulty in accurately valuing very high value properties.
Some lenders that operate in this space tend not to advertise their services and are often backed by ultra-high net worth private individuals or hedge funds. Small family offices are also active in this space but whatever the lender type many will impose a maximum property value above which they won’t lend. In this situation or if a single high value property doesn’t have enough equity to support a loan, lenders will sometimes consider cross-charging against other assets.
Larger loans for high value properties are generally available to Foreign Nationals and Expats and can also be offered by some lenders in a re-bridge scenario. They can also be secured against high quality commercial and semi-commercial properties as well as residential ones although the rates on commercial property deals are often marginally higher and LTVs slightly more restrictive. As ever with bridging the key focus of any reputable lender will be on a well thought out and achievable exit strategy.
When choosing a specialist lender to work with on larger loans it is important that as well as being well-funded they can offer the in-depth financial and property analysis required to produce bespoke, tailored solutions.
Still unsure and need to explore your options? Why not consult an expert?
Central Bridging are bridging loan specialists with a great track record. We are a principal lender offering a range of loan facilities for business use from £250K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales.