International Bridging Finance – Overseas Bridging Loans

International Bridging Finance

We offer International Bridging Finance and European bridging finance for France, Spain, Germany, Portugal, Scandinavia, Netherlands, Austria, Switzerland, Belgium and the United Kingdom as well as many more countries around the world.

The UK has one of the largest and most competitive property markets in the world and because of that, there are a large number of banks, non-bank lenders, private institutions and also private High Net Worth individuals that are happy to put their money to work in the UK.

Here at Platinum Global Bridging Finance we offer international bridging finance to our clients purchasing or refinancing high-value European property that requires fast financing. We can also offer residential bridging finance through a select number of our lenders on renovations of mid to high-value properties being converted into residential properties from commercial units.

International Bridging Finance for Multiple Assets Worldwide

Our lenders can lend against multiple property assets anywhere in the world, as long as they are able to see a quality borrower and good solid assets. Usually, we are approached for multi-asset lending when a borrower wants to maximise what they can borrow without taking several loans against several different properties.

Our lenders can offer a single loan using more than one international property as security to help our clients access more capital and source a one-stop solution for lending. Our lenders offer bridging loans to foreign or non-resident borrowers who own high-value assets as investments but don’t necessarily live in the same country where they own the property.

Obtaining A Higher Loan To Value Using International Bridging Mezzanine Finance

On some deals where clients hold solid assets our lenders have the ability to use their flexible pools of capital and in-house decision-making allow them in certain situations to create very unique short-term financing solutions. This happens using standard bridging finance coupled with a mezzanine finance facility to obtain a higher lending amount than would normally be offered.

Borrowers pay a standard interest rates on the first charge bridge loan and they will pay a premium on the mezzanine portion remaining.  The mezzanine is generally more expensive because of the higher risk but as its for the lower amount of the total loan and for a short duration this is usually more than acceptable to clients to get to the desired loan to value. This type of lending facility is ideal if there has been a down valuation on a property or if a higher loan amount has been refused by other lenders.

The lenders are able to achieve up to 80% Loan To Value using a combination of the below situations:

• The borrower has a short-term plan to repay the Mezzanine finance facility before the main bridge loan.
• The borrower is a high quality person or structure and has a strong asset and liability statement.
• Other assets are added as security, this can be other properties or even a share portfolio.
• The client is able to pledge 3^rd party guarantees – trusts or corporate guarantees for example. 
• The property is on the market to sell so there is a guaranteed exit structure in place.

International Bridging Finance and Europe

The use of overseas bridging finance is quite different in Europe compared to the UK’s uses of bridging finance. In Europe, each country has certain differences in how they view the property markets and so have different rules about how their country uses and treats bridging finance. Even though all the countries are in the same jurisdiction namely Europe each one has pre-Europe conditions that have been passed down many generations. This is why there is such a difference between the individual property market rules in each European country with regard to residential and commercial property.

Why Use An International Bridging Finance Lending Facility?

• In the short term, a bridge loan is easy to arrange and often funds can be released within a short period, as little as 14 days.
• The scope of bridging finance means that lenders can help bridge business funding gaps while longer-term finance is arranged.

International Bridging Finance and Company Structures

Our lenders can lend in deals that involve company structures

• Guernsey.
• Jersey.
• Isle of Man.
• B.V.I British Virgin Islands.
• Cayman Islands,
• Singapore.
• Hong Kong.
• French SCI,
• Gibraltar
• Swiss structures of various types.

International Bridging Loans – Property Asset Classes

• Residential Development/Commercial/Mixed Use
• Land With Planning For Building
• Hotels
• Office Buildings/Office Towers
• Industrial/Warehousing Units
• Shopping Complexes
• Retail/Retail Parks
• PBSA
• PRS / Build to Rent
• Development Exit Bridge

International Bridging Loans – Business Uses

• To renovate a commercial property into residential premises for sale
• Bridge a business sale when funds are needed quickly
• Fast purchase of international commercial property
• Used as temporary financing before placement of commercial finance
• Paying a tax bill
• Financing a new startup or business
• As an alternative to invoice finance
• Commercial business auction finance
• Extending a business lease

OTHER USES FOR INTERNATIONAL BRIDGING FINANCE

• Home movers (payment gap between purchasing and selling)
• Quickly renovating a home to then sell on
• Buying at auction
• Settling a divorce
• Refinancing other loans

International Bridging Finance – Which Countries Do We Offer Bridging Loans?

England – Wales – Ireland – Scotland – Netherlands – Belgium – Austria – Switzerland – Sweden – Norway – Denmark – Finland – France – Spain – Italy – Portugal – France – Germany – United States – Singapore

What Is A Typical Deposit For An International Bridging Finance Product?

Borrowers will need a deposit and around 25% is typical, although different lenders will have different requirements. The higher the LTV, the more expensive the loan is likely to be. Conversely, a bridging loan with a 50% LTV will typically attract an interest rate of between 0.75% to 1.25% a month (for a residential loan including light refurbishment – commercial loans tend to have higher interest rates.) Some lenders may offer a 100% bridging loan LTV if alternative collateral (security) can be provided – perhaps in the form of another property.

International Bridging Finance Interest Rates Are Higher Than a Normal Mortgage

An international bridging loan is a form of short-term finance, designed to last for months rather than years. This means that it has a higher rate of interest than a standard mortgage, which is often set to last for around 25 years. Borrowers must be aware of the short-term nature of these deals and recognize that the interest rate is also illustrated on a monthly basis. Again, this differs from standard mortgages which are expressed in terms of annual interest rates (APRs). Expect to pay significantly more for your bridging loan on the basis that it is short in nature and designed to be rapidly repaid by a property sale, organisation of a longer-term, standard mortgage or another exit strategy.

Short-Term International Bridging Finance Deals

As we mentioned above, bridging finance is short-term in nature and will only be organised for a short, interim period – typically up to a maximum of 24 months. This means that it must be repaid at the agreed time, or it will become extremely expensive. These products are for experienced borrowers who understand the risks involved with short-term finance, and the costs involved. We gather all of our client’s bespoke bridging loan requirements to recommend only the most appropriate financial products for their needs.

International Bridging Loan Finance Exit Strategy

Lenders will want to see a clear exit strategy before they extend an offer for bridging finance – especially for larger loans which may be needed to purchase commercial property in Europe or the United Kingdom. The exit strategy could involve selling the property for cash which repays the loan or securing a more appropriate long-term mortgage on the property. It could also involve selling another form of security (such as another property for a developer with a portfolio.) We can help you to present your exit strategy as part of a compelling case, which makes lenders more likely to extend an offer of bridging finance at favourable terms.

Servicing Monthly Interest Repayments For International Bridging Finance

Typically, most applicants for an international bridging loan will choose not to have monthly payments, although these can be serviced on a monthly basis like a regular mortgage. There are other options for servicing the interest portion of the loan, such as by having it discounted from the principal at the point of lending, or by rolling it up to pay at the point where the loan is repaid. Again, we can help you to find the most appropriate repayment schedule for your needs and exit strategy.

International Bridging Finance Costs

We use all the best lenders and no two lenders are the same. The cost figures provided are meant as an indication only, as they do vary between lenders. To obtain full accurate figures please give us a call and we will be happy to find you the best possible deal.

Other costs are an indication as no two lenders are the same.

Valuation fees – will vary depending on type of property, location and value. They also vary from one firm of surveyors to another, and we have to use a surveyor who is acceptable to the chosen lender. Valuation fees are required when it is time to instruct the surveyor, so are required before loan completion.

Lender’s administration fees – do vary between lenders but are typically and paid on completion, so are deducted from the loan advance.

Lender’s legal fees – need to be paid, and are also deducted from the loan advance.

Telegraphic transfer fee – this is also deducted from the loan advance.

Redemption administration fee – is charged by the lender when the loan is redeemed. This fee is usually added to the settlement figure, so is charged and paid right at the end. This is usually in the region of £120.

Exit fees – these are also charged upon the redemption of the loan and added to the settlement figure. These fees can be high, typically 1% of the gross loan amount. Very few of our lenders charge exit fees, hence it is very unusual for us to arrange a facility that contains one. Therefore our calculator default has been set at zero.

Monthly interest charges – are calculated based on the information provided for the loan rate and also the fee amount.

Overseas Bridging loan Requirements

Each lender will have its own requirements for offering overseas bridging finance, especially as these deals can be very flexible in nature and for large sums (from around £1m up to £500 million and above.) All property bridging loans are likely to have these requirements, however:

You will need to provide a deposit

Overseas property bridging finance companies will ask for a deposit which is likely to be around the 25% to 35% mark, although this can vary widely. The higher your deposit or equivalent equity, the lower the interest that you are likely to pay.

An exit strategy

The borrower will need to be able to evidence a clear exit strategy that will repay the overseas bridging finance on the due date. We can help you to present your exit strategy and project information in the best possible way so that lenders can rapidly review it for quick bridging finance offers.

A strong track record

As mentioned previously, this type of loan is for experienced borrowers with a track record in the field, especially as the sums on offer can be very high indeed for large commercial projects. Offshore bridging loans can easily be abused or used incorrectly – resulting in incredibly expensive situations where the loan continues beyond its redemption date, racking up interest and late-payment fees.

We provide all the necessary information to our clients to make the best possible decision about the right type of finance for their project and needs.

To get the best deals for bridging loans in the United Kingdom and Europe, use a broker like us!

Most property bridging lenders prefer to work with a broker as it makes their processes faster and more efficient. A broker knows how to package up applications in the best possible way for lenders to review, and can smooth out the application process so that the bridging loan can be organised and completed in the shortest possible time. For this reason, most lenders will only offer their best rates via brokers.

We work with an excellent panel of UK and International lenders to provide highly competitive rates and flexible bridging loans to our clients, with deals completing in a week on average (but with some lenders able to complete within three days, or even faster than this if the client requires speed as a priority. For instances where you require a bridging loan completion date within just a few days, please call us immediately to get the ball rolling.)

Multi Jurisdictional Bridging Loans

We can offer multi-jurisdictional loans and bridging finance when the loan capital won’t be deployed in the same country as the asset.

Offshore Loan Structures

Acceptable company structures such as Guernsey, Jersey, Isle of Man, BVI, Cayman, Singapore, Hong Kong, France, Gibraltar or Swiss structures and many other structure types.

Mezzanine Property Bridging Finance

Clients can access up to 80% Loan To Value using bridge and mezzanine finance

Equity Release Bridging Facilities

High-net-worth borrowers are able release equity from international properties and use the funds as they wish with no restrictions

Competitive Bridging Loan Rates

Rates start at 0.55% PCM for straight forward applications. For more complex bridging cases rates can increase to 1% PCM to cover the extra risk and ensure lending is achieved.

Frequently Asked Questions About International Bridging Finance?

How Do International Bridging Loans Differ from Traditional Bridging Loans?

International bridging loans differ from traditional bridging loans in terms of scope and eligibility. While traditional bridging loans are designed for short-term financing needs within a single country, international bridging loans cater to borrowers seeking funds for transactions involving multiple countries. Additionally, international bridging loans may require more extensive documentation and have stricter eligibility criteria due to the cross-border nature of the transactions.

We Can Help Arrange Finance For Your International Property.

No matter how complex, as a leading development finance broker, we can help you get a bridging loan! Contact us today to speak to our team from 9 am to 9 pm, Monday to Friday. Alternatively, we can call you back at a time that suits your schedule – if you prefer this, please complete our contact form and we will get in touch to progress your bridging loan without delay.

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