Property investment is about all things property, from buying something new to developing something old – the end goal being to achieve a healthy return on investment. Property finance covers a broad spectrum of funding solutions to meet these specific needs.
When is property finance relevant?
If you are looking to spend money on anything related to property, you may need external funding to make it happen.
Typically, property finance was focussed on loans in the form of a mortgage, today it is much more specialist and can include:
- Development finance
- Bridging finance
- Self-build finance
- Auction finance
- Commercial property finance
- Agricultural finance
It works for commercial and private investment
Some property finance solutions are very adaptable and can work for both business and private property ventures, including mortgages and bridging finance. Others, however, rely upon the business for collateral and therefore the purpose of the loan must be related to commercial property. This includes development finance, commercial mortgages and mezzanine finance.
I’m not sure I’ll be eligible
One of the key benefits of a more bespoke approach to property finance is that it is accessible to almost all property owners. But you need to be clear about your objectives to ensure you obtain the right type of finance for you.
Securing property finance can allow you to:
- Expand an existing portfolio
- Up-size your current property
- Increase a property’s value
- Invest in the property market
How does property finance work?
The large range of bespoke options now available means that you can secure finance relevant to your particular property need. This includes finance that is a short-term quick fix, particularly where property purchase is involved, to more long-term solutions where funds are released in stages for the duration of the project.
Property finance can be sourced from both high-street lenders and alternative providers and can be structured for either debt, equity or both. A number of property finance solutions are sought as second or third charge loans as short-term or additional funding is required.