Purchasing a property requires a high amount of investment, not only for the property itself but with everything else related to the process; excess legal fees, administration fees, and not to mention the extras such as the physical move, removal company and large quantity of boxes. Sometimes, it can be difficult to arrange a large amount of money in a certain time frame, even if you know you can afford the required amount overall. Loans can often be the solution when money is needed at a certain point.
So, Can You Apply A Bridging Loan to A Residential Property Purchase?
The short answer is yes, you can. In the property market, time is often of the essence, and it’s important to snap up great deals on properties when the time arises before somebody else does it first. A bridging loan can provide the required funds when they’re needed the most. Alternative Bridging Corporation offers an amazing option for bridging loans when purchasing a property.
When an Auction Purchase is Needed
Properties at auction rely solely on who has the cash ready and who can purchase and move in there and then. The auction procedure means you need to be able to bid the required amount at the time. Some fantastic property deals can be found at auctions, but if you’ve found the perfect property at auction and don’t have the funds for it, somebody else will move in and win the bid. Therefore, bridging loans can supply the money you need to purchase a property at auction and repay after the fact.
When You Need to Buy a New Property Before Your Current Property Has Sold
Perhaps you’ve found a great deal on your dream home, but the only thing preventing the owners from accepting your offer is the fact that your current home hasn’t sold yet, while another potential buyer is ready to move in. You don’t want this to be the reason that you lose your perfect home. A bridging loan means you can buy your new property straight away, without having to wait for your current property to sell.
When a Chain is Affecting a Property Purchase
Every property buyer and seller dreams of the ideal situation where there is no chain ready to stall proceedings and make the whole affair a lot more difficult. Chains can be very awkward, and they are extremely unhelpful when needing a quick sale or purchase, or needing a time frame for a property to be wrapped up. They also make it very risky, especially in a long chain, as anything can go wrong or fall through with any of the people or properties involved, even if it is not your own.
A bridging loan can be of huge help when it comes to chains. If you don’t have the money right now for your new property purchase because your home is stuck in a chain of needing to sell, a bridging loan means you can proceed without having to wait.