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Bridging finance Springfield

If you’re looking to purchase a new home but your existing Springfield property still hasn’t found a buyer, you may need bridging finance. Bridging finance helps you fund the purchase of your new property before your existing one has been sold, which means you don’t miss out on buying the real estate you have your mind set on just because you have to wait until you’ve sold your existing property.

Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions.

What can property bridging finance do for you in Springfield?

If you’re looking for a short term loan that provides immediate funds until you can find a more permanent financing option, a bridge loan may be the best option for you.

bridge loan is a short-term loan used to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a good price.

When a borrower expects to sell a property quickly or refinance in the near future, a bridge loan which is short-term financing, can facilitate the financing of a property for a short period of time.

The “bridge” buys the borrower sufficient time to arrange traditional long-term financing,  re-position a property for re-sale or close the deal on the sale of another piece of property.  A bridge loan is typically paid back when the collateral for the loan is sold or refinanced with a traditional lender.

Bayside Finance Solutions offers bridge finance in Springfield and we will consider loaning to people even if their credit score is less than perfect, since property is being used as collateral and leveraging its value in order to bridge a short period of time and borrow short term finance.

How does property bridging finance work?

Property bridging finance is usually secured against a property. Before considering a bridging loan, it’s recommended you have at least 50% of your existing Springfield commercial property value in equity, in order to avoid paying a sizeable amount of interest. And bear in mind that during the bridging period, you’re essentially paying off the interest on two properties, so selling your existing home is a priority.

When we at Bayside Finance Solutions consider bridge loans on a case-by-case scenario and offer very competitive rates. We are able to fund loans even if they have been rejected by banks – because debt service coverage is not up to bank standards or other issues that may have thwarted your application. A hard money lender can move more quickly and requires limited documentation.

When financing a bridge loan, a repayment strategy is put in place, so that the loan is repaid either through the sale or refinance of your property.

 

Mobeni, Durban

What are the benefits of bridging finance for your Springfield property?

Property bridging finance takes away the pressure of having to match up settlement dates, letting you sell your property without worrying about losing it entirely. It is the best way of buying the home you want immediately without having to wait, letting you secure a new property without having to spend days or weeks worrying about selling your existing house first. It is also an ideal option for finance if you’re considering building a new home in Mobeni while you live in your current home.

A mortgage really isn’t an option, as this can take weeks, and getting a definite buyer for your current property may take time. This is one of the most common reasons why Bayside Finance Solutions has more and more clients wanting advice and a bridging solution, as it helps to ‘bridge’ the gap between selling and completion, enabling you to obtain your industrial property. 

What to think about

Get advice about bridging finance before making any decisions. There are quite a few factors to consider when deciding on whether or not bridging finance is the right option for your particular situation:

  • How long do you need the funds for?
  • What is the average time properties are taking to sell in your area?
  • Are you building a new warehouse or buying  existing real estate?
  • How soon can you get your existing business  ready for sale?
  • Will you be able to meet the repayments on your current loan and your bridging loan?
In today’s South African property market, it makes sense to move quickly when you find the property you want to buy. Having to wait until you’ve sold means you could potentially miss out. If you think bridging finance could provide a solution while you sell your existing commercial property in Springfield and buy your new dream home, talk to us at Bayside Finance Solutions and we will give you options and advice.

 

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