Designed for a multitude of reasons for properties comprising of a residential and commercial element, our semi-commercial loans can be used for any purpose such as to purchase a property, new business, change of use or refurbishment.
Enquiries: Responded to within 1 hour
AIP: Issued within 2 hours
Initial due diligence: Commenced immediately upon receipt of the application
Funds: Typically, be made available between 1 to 4 weeks. 28-day turnaround for auction purchases
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A semi-commercial bridging loan is a loan used on a property which does not fit into either the residential or commercial category, as it combines both elements. A common example is a property which has flats above a shop. It does not make any difference what percentage of the property is residential or commercial.
Semi-commercial and commercial bridging loan cases are treated almost the exact same, as while they are used for different purposes, they have a lot of similarities. Commercial bridging loans provide short-term finance for a property which is used solely for business purposes, whereas semi-commercial bridging loans are used for mixed-use properties. While it is deemed more straightforward to secure a residential bridging loan, here at Hope Capital, we offer bespoke solutions and have worked with a significant number of brokers and borrowers to achieve their semi-commercial and commercial aspirations.
At Hope Capital, we offer efficient full valuations for semi-commercial projects, which is the process when someone physically views, inspects and analyses the property. We are proud to work with several leading comprehensive valuation partners and will appoint a valuer on our behalf to visit the property. On some occasions, we may be able to accept a previous valuation survey if it has been completed recently. The valuer will assess the condition of the property or land, and the value of similar assets in the area to arrive at a valuation amount.
Here at Hope Capital, we are completely transparent about our rates and fees, meaning all fees will be addressed from the get-go so all parties involved are on the same page. The costs involved will depend on the project, however, here are the fees which borrowers will need to consider:
There are various differences between a bridging loan and a mortgage, with the most suitable options depending on the borrower and the scenario. Both options have different criteria and their advantages and disadvantages.
Bridging finance is an advantageous and efficient way to secure funds when buying a new property when a mortgage or a personal loan is not viable, e.g. if the property is derelict and a mortgage provider, therefore, does not feel comfortable providing a loan much more quickly, often in a number of days rather than weeks. Whereas a mortgage is a more suitable option for someone who is looking to borrow money over a longer period, with lower interest rates.
Regardless of whether your client decides to opt for a bridging loan or a mortgage, it is paramount they do lots of research to compare which is the most suitable option.
The perception that bridging finance is an extremely expensive option could not be further from the truth. The reality is that while rates have aligned to changes in the wider market, they have fallen dramatically over the past few years, so are now considerably lower than they used to be.
When applying for a bridging loan at Hope Capital, we want to make the process as straightforward as possible, while ensuring we deliver the outcome our client is looking for. Before submitting a case, we suggest you take a look at the criteria below to ensure we can get the ball rolling as quickly as we can.
Of course, we will be keen to know more about the property, and while this is not always a deciding factor in terms of whether we can provide a loan or not, sometimes we will ask to see the borrower’s property portfolio to see if they have experience in this area. However, this will all depend on the purpose of the property, i.e. if it is commercial, land etc.
We will need to understand what our borrower is using the loan for as different circumstances require different levels of documentation and approaches. For example, using a bridging loan for an auction purchase will require a different process than investing in a property for business purposes.
This is a key one. To ensure we are comfortable providing the loan required, we will need to know how the borrower will plan on repaying the loan after their term is completed – this is also known as an exit strategy. Examples of common exit strategies include moving on to a buy-to-let mortgage, paying the loan off from the sale of the property etc.
Great to hear you are interested in working with Hope Capital! To make an initial enquiry, contact our sales team via a method of your choice. Once we have received your enquiry, we will be on hand to help guide you through the process.
As soon as we have received your enquiry and had an initial discussion about the deal, we will issue you with an AIP.
Time to submit the application form. Our team are on hand if you need any assistance with this.
Once you have submitted the completed application form, you can be safe in the knowledge that your case is in our pipeline, and a member of our dedicated underwriting team will be in touch to introduce themselves.
We will then commence our initial due diligence and issue formal terms. Our step-by-step guide will outline the process and introduce our key partners such as valuers and solicitors to ensure that all parties are kept in the loop throughout, to achieve a speedy completion.
Before we pass your deal over to our portfolio management team, we will finalise any legal elements involved in the loan, ensuring the borrower is informed of the progress, so funds are turned around as quickly as possible. Any proc fees will also be swiftly paid as soon as funds have been released.
Throughout the term, the borrower’s dedicated case manager will be available to assist with any questions and provide everything needed for the smooth running of the loan, including the release of refurbishment funds if required.
Once the loan is ready to be repaid, the case manager will provide redemption statements and will liaise with all parties to assist with the timely redemption of the loan.
Heavy refurb includes exit fee of 0.5%
* For max LTV on medium/heavy refurb homeowners and/or large portfolio only
+ The valuation method chosen will be confirmed at application stage, following initial due diligence and at underwriting discretion
