Bridging finance for land purchase and log home development

Bridging finance for land purchase and log home development

Bridging finance, Bridging loans, short term funding, Development funding, Development finance, short term finance.

All the above are classed aa short term secured funding. Secured as, the loan offered by the funder that completes and is charged on the title register at land registry. It will be removed once the purpose it so served has come to pass and it has been redeemed back to the funding company although, until that time you will find it on the charges section register with the funders details lodged.

So, a description of some funding we are currently in the middle of awaiting valuations to be carried out on three parcels of land as follows – one parcel has the family home, own title then we have the paddock area, own title with full planning permission for 31 holiday lodges and finally, some pasture land that may in the future be added to the land with planning if the new owner decides to build more lodges.

The client will purchase the main house for cash and we are funding the purchase of the two other parcels of land at just 50% loan to the values meaning, the client will put up the remainder 50% equity/deposit. We will then have a draw down facility of 100% that will allow the client to commence the ground works, put in services and slowly but surely construct the lodges.

We have given the client a 2 years term with another 6 months to commence the holiday village rentals and have the scheme then classed as a going concern with rental income being produced. We will then introduce the finished working project to a commercial banking funder who will offer to refinance the current short-term funding and all being well give the client a 20 years financing deal.

Ask for Mark when contacting.