Property Bridging Finance Springfield

Property Bridging Finance Durban may be the answer to purchasing your dream home, raising a further bond on your existing property or come in handy in difficult situations when transferring a bond from one financial institution to another. 

Bridging Finance is becoming a more popular source of finance in Durban for those looking to raise money for a Durban Property with deadline.  We all know 2020 as a disaster year, but why let Lockdown and COVID19 affect your new dream home purchase.  We at Bayside Finance Solutions have just the answer for you through our Bridging Loan services.

What is Property Bridging Finance?

Property Bridging Finances is an interim loan.  It gives Durban property Owners access to money quickly to cover expenses (possible a dream home, school fees, living costs, etc) while waiting for a property transfer at the Deeds office.  Repayments on bridging loan are calculated on a fee bases from date of fund transfer to the repayment date. Repayment can  occur once the transfer of a property has been finalised and the sellers have received their payment for the property. (equity).

Accessing Property Bridging Finance Durban can be relatively fast (two to three days) when compared to a mortgage bond or a home loan from the bank which may take months.  At Bayside Finance Solutions we work very closely with Brokers to minimise the time it takes to complete a Bridging Agreement as we understand the cash flow pressure people could be in while trying to meet payment deadlines. We pride ourselves on being able to give you expert advice from our experienced team to ensure that you fully understand all Bridging Loan requirements.

What can Property Bridging Finance Loans be used for?

Property Bridging Finance Durban are commonly applied for whilst awaiting finalisation of:

  • The sale of a property.
  • Raising a further bond on an existing property.
  • Transferring a bond form one financial institution to another.

Many sellers acquire these loans to settle transfer dutiestransfer fees or to pay rates and taxes which need to be settled before the Deeds office will process the property transfer.

How does Property Bridging Finance Durban work?

After receiving an application by you or your attorney, the application will be examined to ensure all the required information has been provided. Property Bridging Finance is always secured against the equity from a property sale. We offer you advances up to 80% of the equity due to you after all disbursements have been made. 

During the bridging period, the fee on a Bridging Loan is calculated on the loan amount. We pride ourselves on being able to provide you with competitive rates and individual attention. 

Repayment on Property Bridging Loans are done as a lump sum payment on an agreed upon date. The fee amount is added to the capital amount loaned to calculate the settlement amount due.  Such settlements are made through an attorney, and paid from the released funds of the sold property.

This same process is followed when Property Bridging Finance is secured for raising a further bond on the existing property or transferring a bond from one financial institution to another. In the case of a Property Bridging Loan being secured for switching a bond from one financial institution to another, Bayside Finance Solutions will offer 70% of the equity due to you.

What will be included in your Settlement Statement?

Once a transaction is registered in the Deeds office, the registering attorney will request a settlement amount.  This will appear on a statement and the following amounts reflected:

What are the benefits of Property Bridging Finance Durban?

Property Bridging Finance Durban takes away the pressure of meeting payment dates and allows you to utilise your funds due to you immediately through a Bridging Agreement. You have peace of mind in that funds are released to you when required and the repayment is secured through your equity.

What are the risks of Property Bridging Finance Durban?

As we operate openly with our Brokers and Clients, we do like to make our Durban clients aware that short term Bridging Finance Fee could be slightly more expensive when compared to a traditional bank mortgages or home loan.  Bridging Agreements are usually only executed over months and the loan paid back within a short period. 

Property Bridging Finance repayment is reliant on the process efficiency of South African Deeds office which can affect the repayment date. Property transfers take time and this period needs to be considered before applying.  

What are some other reasons Durban property owners apply for Property Bridging Finance?

Bayside Finance Solutions has many clients requiring cash flow to meet settlement dates on personal expenses or the purchase of a dream home. Bridging Finance is often used to assists with a property transfer at the Deeds Office.  Many clients apply for Bridging Finance to assist with transfer feestransfer duties as well as rates and taxes needing to be paid.  These costs need be cleared before the Property transfer will be completed.

What factors should be considered before applying for Property Bridging Finance Durban?

It is advised that you consider the following facts before applying for Property Bridging Finance Durban:

  • What period do you require the funds for?
  • How long will the Deeds office take to complete the transfer?
  • Do you have funds available to cover any repayments if there are issues?
  • Are there any outstanding costs attached to the property file at the Deeds Office?
  • Is there a Sale Agreement in place with the exact price listed?
  • Is the purchase price guaranteed through cash or a bank bond?

Answers to these questions may seem uncertain and daunting but we are happy to advise and have our experts guide you.  

Contact us you have nothing to lose!

What are the Property Bridging Qualifying Criteria?

The following searches and documents need to be in place in order for an individual to apply for Property Bridging Finance Durban:

  • Verification of Ownership of the Property (internal Deeds office search will be completed);
  • The Property is not subject to any Interdicts or Attachments;
  • There are signed Bond and Transfer Documents in place;
  • The Purchase Price has been secured through Cash and/or Bank Bond;
  • Letter of Undertaking is obtained from the Transferring Attorneys or the Attorney registering the bond.

Need help with these points? Give us a call!
032 815 1114

How do re-payments of a Property Bridging Loan work?

Once a property transfer has been registered in the Deeds office, the registering attorney will request the settlement figure.  This will be calculated and a statement will be emailed to registering attorney.  The registering attorney will then deposit the funds directly into the company bank account. Re-payments on such loans is made as a lump sum figure.

No agreements will be made without signatures from all parties!

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