Bridging Finance
Over the last few years mainstream lenders in the UK have implemented tighter restrictions and regulations. For this reason borrowers opt to raise capital through different ways. A bridging loan or bridging finance is a great solution for clients that need quick access to capital. Bridging loans are secured against UK residential, commercial or semi commercial property.
Growing your wealth alongside Consulco
Our affiliated Company Consulco Finance is a well-established UK Lender that has successfully introduced bridging as an alternative short-term and secured investment to investors from all around the world. Investors can participate in the income from the Consulco loan book and gain high yield returns with their investment being secured against immovable property located mainly in London.
We carry out the underwriting, due diligence and loan administration with highly experienced lawyers, bankers and external valuers to minimize risk and assure achievement of investment objectives.
The product is transparent with the clients being able to review the loan terms, status of property security and property valuation and predetermine their returns. Legal charge, credit report on the borrower and other relevant information are available to be reviewed before proceeding with any investment decision.
Applications of bridging finance
Bridging loans are basically an interim financing for business purposes until permanent funding. The loans are usually up to 70% of the value of the property with an average annualized rate applied at 12% and their duration usually ranges between 3 to 18 months.
Bridging finance can be used in both commercial and residential property transactions. Home buyers, home builders, landlords, property developers and investors can use the short-term loan. Whether buying a property at auction finance, building a property or raising funds for a refurbishment project, the short term loan can be an appealing option.
The bridging finance sector in the UK is now worth an estimated £4 billion.
The whole process imprinted
Key Characteristics:
- High Yields – A proven scheme of solid returns up to 8% per annum
- Quick exit strategy – A short-term investment horizon up to 18 months with an option to redeem or reinvest without new entry fees.
- Strong security – Your investment is secured against UK residential, commercial or semi commercial properties located mainly in London with more than 30% safety cushion.
- Transparent product with all documents being available before your investment decision.
- Diversification – Lower investment risk (Max LTV 70%)
- The absolute protection of the UK legal system
Sample of our Loan Book
Our Statistics
- Total lent out to borrowers: 65+ mln
- Loans granted: 210
- Value of properties funded: 165+ mln
- Average size of active loans: £390,000
- Average return rate to investors: 7.4%
- Average Loan-To-Value: 51%
- Investment success for 6 years
Hedging Solutions
The Product is Sterling denominated however investments can be facilitated in multiple currencies. We undertake to hedge your foreign exposure for certainty of capital and interest.
By using hedging strategy you eliminate one of the most significant risks – currency risk. You can receive capital and interest in any freely convertible currency you prefer and at the equivalent exchange rate as agreed on the initial day of the investment.
Conclusion
We are confident that Bridging will remain significantly strong as a unique alternative investment, providing attractive risk adjusted returns, diversifications across different loans, low portfolio volatility compared to traditional investments and lower correlation to the market movements of traditional investments such as stocks, bonds and ETFs.
The bridging sector has thrived alongside the UK’s economy. According to the latest statistics, the sector will continue to grow between £6bn and £8bn over the next three to four years.
For further information please do not hesitate to contact us at: invest@consulcofinance.com
© Consulco Limited 2017. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Consulco Limited. The information provided in this publication does not constitute legal, tax or investment advice and no responsibility is accepted for any loss occasioned directly or indirectly as a result of persons acting, or refraining from acting, wholly or partially in reliance upon it.
