How can we help you ?
3. Bridging Loans
Do you lend to non-UK individuals or non-UK companies?
Yes we do. For non-UK individuals, we require them to have a footprint in the UK already (eg they already own investment properties) and we will require sufficient proof of residency in their home country. They will also need to sign their documents in the presence of a UK lawyer.
For non-UK companies, we again require them to have a footprint in the UK with personal guarantees to be provided by the shareholders of the company. They will also need to sign in the presence of a UK lawyer and we will require a legal opinion to be provided by a lawyer in the jurisdiction in which the company is registered.
Do you lend to trusts, charities, pension funds (SIPPs, SSASs) or LLPs?
We do lend to LLPs and we treat them in the same way as UK limited companies.
We will lend to trusts providing that there is a clear structure and we are being provided with personal guarantees from the beneficiaries.
We do not lend to charities or pension funds.
How much will the valuation and legals for these deals cost?
We have fee scales for all of the professionals we use, but the exact fee will be variable depending on each borrower’s case and the value of the property.
For more information, please see the valuation and legal fees section of our Product Guide.
Do you allow joint legal representation?
No, LendInvest will instruct its own solicitor to act on its behalf and you will be liable for their costs. The solicitor acting for you (to be acceptable to LendInvest) must have at least three Solicitors Regulatory Authority (SRA) approved managers. Please note that licensed conveyancers are not acceptable.
Will you need to see proof of deposit? What form should that proof take?
Yes, in all cases we will need to see evidence of the source of deposit and this will also need to include stamp duty.
Do you allow a borrower to provide a gifted deposit?
Yes, we do, but you’ll need to send us further documentation, including the relevant indemnity policies and letters of no interest from the source of the funds.
Do you allow mezzanine or other second charge lenders to fund a borrower’s equity behind your first charge loans? If so, do you require a deed of priority to be in place?
We will review this on a case-by-case basis and it may not always be possible. If we do accept, we will require a deed of priority in all instances.
Do you need to meet the borrower?
In certain circumstances we will need to meet the borrower and visit the security, particularly on more complex or high value transactions.
What evidence is needed to prove serviceability on a bridging loan?
Bank statements covering the last three months are required to evidence the client’s ability to service a loan.
How do you determine the loan term?
This is reviewed on each case and depends on the client’s intentions for the property and their exit strategy.
When lending against commercial property, can you lend against the trading value or consider that value in your lending decision?
No, we will always lend against the vacant possession value. This may be discussed if we have a blue-chip tenant in place with a long term remaining on their commercial lease.
I already have a loan with LendInvest; can I borrow additional monies?
Yes, subject to review and loan to value (generally a new valuation will be required in order to determine the amount we can lend).