How it works.
Ashlar offers specific specialist Development and Bridging loans that can be tailored to meet your property funding needs, from start to finish.
This funding can be used for a new build, conversion or refurbishment, covering a single through to multiple units, built across a number of phases, be they residential, commercial, industrial or social in nature.
We walk the talk.
Ashlar can offer compelling financing solutions, based on our expertise and experience from building projects and financial structuring.
Bridging loan
Invariably it has a shorter term; and is more common towards the Completion or Exit phases of a project.
A bridging loan can be used for a variety of reasons:
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For fast access to cash for any property development purpose – secured against a property.
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For refurbishment – a cash injection to improve the value of a property.
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To fund the completion of an opportunistic or planned property purchase before long term finance is in place.
Development loan
a medium-term funding option, usually for between 6-36 months. It is designed specifically to assist with the purchase costs as well as building costs associated with a residential or commercial development project.
Any loan invariably has two parts.
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The first part of the funding will often be used to assist with the purchase of the development site. It could be land where one or several new properties will be built or an existing property that will undergo a refurbishment or a change of use.
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The second part of the loan is used to pay for the costs of the build works associated with the project. These funds are usually drawn-down in stages, as opposed to being given in one amount at the outset. This draw-down often happens once a month as works are completed on the project.
Funding levels available
The amount of funding that can be provided will be determined by a professional valuation report that will contain 3 key numbers:
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For refurbishment – a cash injection to improve the value of a property.
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the value of the completed property(s) assuming all works have completed.
Each lender will have their own lending parameters that determines the maximum that can be lent. At Ashlar we will lend:
Up to 75 % of the current value (Loan To Value, ‘LTV’)
Up to 100% of the build costs for all our development loans (see Products).
75%
Each deal is assessed individually and bespoke to cater for the needs of BOTH parties. Please contact us for a specific illustration.
Repayment of loans
There are several ways that borrowers can repay their loans:
Repay with their own funds.
Repay the full amount using sale proceeds from the finished property(ies).
Refinance on to a long-term loan if the borrower wants to keep the building or finished development.
Refinance using a Bridging (or Exit) Loan to crystallise profit, borrow at a lower rate than originally planned and then potentially fund another future project without having to wait for the sale of the current project.