Bridging finance offers a means for clients to acquire properties quickly, or to allow for restructuring of finished developments to make them more appealing for longer term finance or a sales period. Bridges are generally more expensive than term finance, but in exchange for the increased cost, completion timelines are greatly compressed to matter of weeks rather than months. Examples for use of bridging finance are as follows:
An auction purchase whereby a 28 day completion is required.
A finished development which needs more time to sell the completed units.
A restructure of a portfolio from being held in a personal name to a limited company, or some other legal entity (or vice versa)