Generally speaking, applicants could be private or business individuals, this may include, but not limited to, property developers, investors, property renovation companies, landlords, entrepreneurs, business owner/operators or companies in need of additional funds or cashflow.

Bridging Loans have a wide range of uses and applications, typical examples include:

Auction property purchase: Property purchased at auction will usually need to complete within 28 days or less, so a Bridging Loan is the perfect solution to raise funds quickly and effectively.

Property renovation, refurbishment or conversion: In this scenario Bridging is ideal, to provide additional short-term funding to facilitate building works, in addition to the property purchase.

Restoration of Development Finance facilities: Usually used to increase the time-frame and enable the completion of works to ready a property for sale on the open market.

Business related bill payments: If urgent funds are required and secured against a property, then a Bridging Loan can be used to help pay business related bills.

Refinancing – existing Bridging Loan: Generally when an existing lender will not extend the original loan agreement, and the borrower needs to obtain a new Bridging Loan from another lender.

Extensions to a lease: When a lease agreement is due to expire, a bridging loan as a solution could offer a time based extension.

Distressed sale property purchase: Bridging finance lenders are available to offer loan advancements based on the value of a property, irrespective of the purchase price.

Non-mortgageable or uninhabitable property purchase: There are numerous reasons why a property is deemed as such. This could be fire or flood damage, or simply that the property has no kitchen or bathroom, consequently, deemed “not to be mortgageable” because it is un-inhabitable.

• When applicable the borrower will be responsible for legal fees and valuations.
• Loans are available with first and second charge, with certain lenders reliant on lending with an Equitable Charge.
• The provision of bridging Loans is for but not limited to UK citizens, Foreign Nationals, Expatriates, UK companies, UK Trusts, Offshore Trusts and Companies, Executors, Sole Traders, Partnerships and Limited Liability Partnerships etc.
• Lending is relative to certain property types that include: Rural Properties, HMOs, Grade 2 listed, Mixed Use, Commercial Property, Buy to Lets, Residential Investment property, Ex-Local Authority property, Semi-Commercial, Land with Planning and Property Portfolios.

• Up to 75% ‘Loan to Values’ (LTV) Loans available, with additional security could reach 100%.
• Depending on the ‘Loan to Values’ (LTV) required, interest rates could start from 0.4% per month.
• Loans sizes available from £25,000 upwards!
• In certain cases there may be no redemption or exit fees.
• Lumi Bridging Solutions provide services to United Kingdom based applications.
• Bridging Loans may be available for bad or adverse credit status
• Loan terms usually from 3 to 18 months.
• No upper age limit for those wishing to borrow.

In no particular order: Lenders require the location of the property by providing the full address, including postcode or property name (if applicable).

If applicable, details of planning permission for the property.

Details of borrowers must be given to lenders. For example: Is there a limited company, an individual or other that is looking to apply for finance. In all circumstances, they need the full names of all applicants, each providing their Date of Birth with a full history of residential addresses for the past 3 years. Should the application be made by a company, then the company name and number with a full listing of all Directors details and all significant shareholders where share ownership is greater than 20%?

Valuation or the sales particulars if you are in possession of documentation (Don’t instruct your own valuation)

A detailed explanation of your intentions and plans for the property is required.

What will be the Bridging Loan repayment method (As discussed in the afore-mentioned exit strategy, usually via sale or refinance).

When sourcing a Bridging Loan, there are numerous fees that should be taken into account. They include:

• Arrangement or administrative fees – A charged made by the lender for the loan provision.

• Lumi as a brokerage have no up-front brokerage fees, however we charge a fee for our services in arranging a loan or any finance facility.

• Exit or completion of loan repayment fee – Usually charged on completion of loan its repayment.
• Surveyors or Valuation Fees – A Royal Institution of Chartered Surveyors valuation (RICs) is usually required.
• Legal Fees – Solicitors fees.
• Interest – Usually calculated daily, but can be on a monthly basis.

Lumi Bridging Solutions can usually provide a preliminary offer within 48 hours. In some cases, this can be obtained within a few hours, dependant on the time of day the application is made to the lender.

The timescale for completing a bridging loan is dependent on a number of different factors including but not limited to, obtaining all necessary documents from our clients, the case being underwritten by the lender’s underwriters, and subject to the relevant approvals from the lender’s Solicitors and their nominated valuers.

We aim to complete all applications as fast as possible.

Bridging Finance can be used for almost any legitimate reason as long as it is secured against an appropriate asset.

Funds can be raised quickly to purchase a property at auction or perhaps pay a tax bill.

Traditionally, Bridging Finance can be used to renovate an investment property, or purchase a property which is classed as not being mortgageable or inhabitable in its current state and you intend to bring it into a good order of repair through refurbishment.

Lumi Bridging Solutions uses years of experience and current technology, to source the most appropriate lender based on all the information provided by the borrower. Saving time, money and maximising ‘Loan to Value’ bridging Finance.

• Borrower’s details must include full names or company name and number with full address.
• The full address of the property, which will have the loan secured to.
• What was source for the deposit?
• The length of term required for the loan.
• The all-important “exit strategy”, or method that will be used to repay the loan.
• A detailed report of any experience the borrowers may have, when that experience is applied to the proposed plan or intentions for the property.
• Has there been any bad or adverse credit history?