Bridging Finance

Seizing Opportunity with Speed and Flexibility

​

In the fast-moving property market, speed is paramount. Opportunities arise quickly and often require immediate access to capital to secure them. At Knightly Group, we recognise that traditional finance is not always fast enough. Bridging Finance is a powerful, short-term funding solution designed to ‘bridge’ a gap, providing the rapid injection of funds needed to execute a transaction, overcome a challenge, or unlock potential in a property.
 

As your specialist finance partner, we provide direct access to a broad spectrum of bridging lenders who have the streamlined processes to deliver funding in days, not weeks. We leverage these relationships to find a quick, effective, and tailored solution for your short-term funding requirements, ensuring you never miss a valuable opportunity.
 

Common Uses for Bridging Finance

A bridging loan is a versatile tool used by property investors and developers. Common scenarios include:

• Acquisition Opportunities & Property Refurbishment: This is a primary use for bridging. It allows you to fund both the purchase and renovation of a property, which is ideal for projects ranging from light cosmetic upgrades to heavy refurbishments or converting a commercial property to residential use.

• Breaking a Property Chain: Prevent the collapse of a purchase by providing the funds to acquire your new property before the sale of your existing one completes.

• A Stop-Gap Solution: Provide interim funding while you arrange a more traditional, long-term mortgage or development finance facility.
   

Specialist Use Case: Auction Finance

Property auctions provide an opportunity to acquire assets at excellent prices, but they operate under intense time pressure. When the hammer falls, you are legally committed to the purchase, with completion typically required within just 28 days.
 

This is where our specialist Auction Finance service is essential. We work with you before the auction to establish your budget and secure a finance facility in principle. This gives you the critical advantage of being able to bid with absolute confidence, knowing your funding is already arranged. Once you have won your lot, we work tirelessly to ensure the funds are released for a smooth and timely completion, protecting your deposit and your new investment.
 

The Knightly Group Advantage: Specialist & Flexible Funding

As a specialist brokerage, our expertise extends beyond standard bridging. We have access to an exclusive panel of lenders who can offer highly flexible and creative funding structures, allowing our clients to maximise their leverage and returns.
 

Specialist Feature: Below Market Value (BMV) & 100% Funding

A key advantage of our specialist lender access is our ability to arrange Below Market Value (BMV) Property Finance. For investors who have skilfully negotiated to buy a property for less than its open market value, this product is transformative.

• The Valuation Principle: The foundation of this product is that lending is secured against the property's certified Open Market Value (OMV), rather than the negotiated purchase price. This principle allows the discount you negotiate to be instantly recognised as equity, with the loan calculated against the asset's full intrinsic worth.

• Achieve 100% Loan to Cost: This structure can, in the right circumstances, allow you to borrow 100% of the purchase price, completely funding the acquisition.

• Incorporate Additional Costs: If the total loan does not exceed the lender's maximum LTV (e.g., 70-75%) of the higher market value, the facility can be structured to include all your construction and refurbishment costs. The interest for the loan term can also be "retained" or rolled-up within the loan, meaning no monthly payments are due.
   

Key Financial Features

While more expensive than long-term finance, bridging loans are one of the most useful tools in property investment due to their sheer speed and flexibility.

• Loan to Value (LTV): Standard bridging loans typically range from 60% to 80% LTV. As highlighted above, our specialist access can create opportunities beyond this.

• Loan Term: Facilities typically last between 1 to 24 months.

• Property Condition: Lenders are flexible and will fund properties of any construction type and in any condition, making it ideal for refurbishment projects.

• Borrower: Facilities can be tailored for both individuals and corporate entities.
   

Our team of expert advisers are on hand to help you navigate the options and secure flexible, fast, short-term funding for your next residential or commercial property acquisition.