As one of the home counties, Hertfordshire sits in close proximity to London, making it an ideal location for commuting to the capital. The county also boasts several bustling towns, as well as the city of St. Albans. Although it is a well-populated county (approximately 1.2million), residents can also enjoy plenty of green space including parts of the Ridgeway Long Distance path.
With some of the country’s principal roads passing through Hertfordshire such as the A1, M25 and M11, the area is well-connected to the rest of the UK. Rail routes also provide excellent links to London. The ease of getting to and from Hertfordshire contribute to its’ attractiveness for property investors. For those looking at property in Hertfordshire, Novellus Bridging is able to provide funding for a range of projects and purposes.
What Is A Bridging Loan?
Bridging loans are forms of finance offered on a short term basis to bridge a gap while long term financing is secured. Applying for a Novellus bridging loan is a quick and easy process, ensuring those who need funds fast are able to access the cash needed, often within days of the application.
For the loan application to be considered, there must be an asset in place to act as security, which is usually a property being purchased or an existing building owned by the borrower. The borrower must also have a clear exit plan in place, such as selling the property or refinancing. The loan will generally need to be repaid within a year.
What Can Bridging Loans Be Used For
Bridging finance can be used for several different reasons, including:
Land purchases – when land for development in Hertfordshire becomes available for sale, it may be of interest to several investors. Novellus bridging loans allow land sales to be completed swiftly by providing quick access to funding following the approval of an application.
Buy-to-let – with its close proximity to London, Hertfordshire is an ideal location for rental property. Landlords looking to buy can utilise bridging loans to secure these investments, allowing time to secure long-term funding.
Property Renovations– a property that is currently not in a habitable state may not qualify for a traditional mortgage. However, bridging loans can be used to buy and build these types of properties, even if there are no services, a working kitchen or bathroom. This provides the developer time to renovate the property and apply for long term finance.
Who Are Bridging Loans Suitable For?
Bridging loans can be used by anyone looking to bridge the funding gap while seeking long term finance. This includes individuals looking to make an auction purchase or developers looking at multi-million-pound property projects. They are also suitable if funding is needed quickly, or for situations were establishing traditional finance options is proving difficult.
Before making an enquiry applicants need to make sure they have an asset to act as security, as well as a well-thought-out and achievable exit strategy to repay the loan. These are the two of the most important criteria for approval.
The application process at Novellus is generally a simple process, as we have no credit committee which enables us to make quick decisions. As our timescales are quick for both the approval and the application process our clients turn to us when they can not afford to wait several months, which can be the norm for High Street bank loan applications.
Novellus provides unregulated bridging loans generally between £500,000 and £5,000,000, although we consider any sum required. Our Loan To Values (LTV) are usually between 50 – 70%; however, we have approved applications with higher LTVs than this in certain circumstances.
To find out what the costs of a bridging loan could be, use our online bridging loan calculator for guidance.
To find out if you qualify for one of our bridging loans, call us today on 0203 397 4871 or fill out one of our application forms.