Rachel Emmerson ACCA FCCA
- Partner in Accounts, Outsourcing and Business Services
- +44 (0)330 124 1399
- Email Rachel[email protected]
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Very few property investors will be in a position to acquire new property assets outright, and even if possible, it may not always be sensible to tie up cash in that way. So what are the most common ways to fund acquisitions?
Here, are the most common sources of property finance.
Bridging finance, often called bridging loans, provides fast-turnaround, short term finance to fund a property purchase. Decisions on borrowing can be given in as little as 24 hours but expect reasonably high interest rates. Bridging finance is often used to fund opportunistic acquisitions or auction purchases, or to exit development finances before a sale.
Used to fund long-term investment properties, or to refinance existing properties. Funding is typically given where a property can demonstrate good returns and a strong tenant portfolio on long leases.
Portfolio finance is often used by investors with three or more properties and who are looking to refinance that portfolio. It is typically used by an investor wanting to change the structure of ownership, perhaps into a corporate vehicle, or to achieve better pricing.
As the name suggests, development finance is used to fund new ‘ground-up’ development. Funders will typically want to see a successful development track record before lending.
Lenders will look to fund a business wishing to buy its own building or premises. Lenders will fund sole traders, limited companies and partnerships a move from rented to owned premises.
The Kreston Reeves funding team have access to funding experts’ niche in this area and with access to over 100 lenders, support from your accountant when considering and applying for any type of finance is seen upon very favourable by lenders, with a 4 x more likely successful outcome. Please reach out to one of our Funding team for more information on how this service could work for you by calling +44 (0)330 124 1399 or contact us here.
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