Bridging finance decisions are made very fast. You are likely to be able to complete in a matter of weeks rather than months (right solicitors). You can get pre-approved for bridging finance so that if necessary you can provide proof of funds and you know that the money to exchange and complete will be available for you when you need it.
Expensive? Compared to what?
If you don’t have enough cash for outright purchases (and remember you’ll also need money for your refurbishment and legal costs) then bridging gives you the same bargaining power as someone buying with their own cash for the reasons outlined.
Leveraging – the speed at which bridging allows you to exchange contract may be key to securing the deal, even if it is not particularly below market value.
You also have the ability to make offers on property that buyers who require mortgage finance just could not buy. These include:
· Unmortgagable properties (e.g. without a kitchen or bathroom)
· HMOs (houses in multiple occupation)
There is the possibility of 100% plus financing.
Applying for bridging finance secured on your own property has a further advantage over bridging secured on the investment property. If using an investment property as security you can avail of 70% of the purchase price.