Permitted & Light Development Bridging Loans
Permitted and light development bridging loans are specifically designed for property development projects.
Permitted development bridging loans fund development projects that do not require planning permission or other regulatory approvals, such as converting the commercial property into residential units under permitted development rights. Light development bridging loans are used for projects that require some planning permission or regulatory approval but are considered relatively low risk, such as refurbishing an existing property or adding a small extension.
Both types of bridging loans are typically used to bridge the gap between the initial acquisition or refinance of the property and longer-term financing or the sale of the property. These loans can be secured against the developed property, and the loan amount is based on the property’s expected value once the development is complete.
Permitted development and light development bridging loans can be useful for property developers who need quick access to funds to complete a development project. However, these loans can carry higher interest rates and fees than traditional mortgages due to their short-term nature and higher risk. It’s important for borrowers to consider the costs and risks of these loans carefully and to work with a reputable lender or broker who can provide clear and transparent information about the loan terms and conditions.
How can Sterling Commercial Finance Help?
At Sterling Commercial Finance, we’ve been helping businesses access funding for over 20 years. Get in touch with the team today to see how we can help your business.