Bridging loans on land or property- we lend against your land both with and without planning permission.
How you can use vacant land as collateral for an bridging loan- as land equity loans are more difficult to obtain than other forms of financing.
With vacant land, you have money tied up in a property that you may have other uses for. In this case, an bridging loan on that vacant land can allow you access to that capital. Land equity loans are not as readily available as home equity loans, and obtaining such a loan will have its own unique challenges.
Raising finance on your land or property
Your lender may be hesitant to use vacant land as collateral for an equity loan. Since vacant land is not in use by the owner, lenders view it as too easy to walk away from if you cannot or do not want to pay.
If you own a home in addition to the vacant land, it is possible that the loan deal may be better for the lender if you offer to put up your home equity as collateral.
Because lenders will typically lend much less money for equity in land, it is best if you do not owe any money on the property that you are looking for the equity loan on. Any outstanding balance will reduce the amount that a bank is willing to lend. In many cases, the outstanding balance will reduce the amount by enough that an equity loan on the property is not cost-effective for the bank.
A bank will usually lend up to 80 percent of the value of a home for an equity loan, and sometimes even higher amounts are approved. However, loans on vacant land are typically for a much lower percentage. Banks typically will not lend over 35 percent of the value of the property. If the bank will provide you with a loan, the interest rate will also be higher to compensate for the additional risk.
In addition, more upfront fees may be required by the lender, driving up the cost of the loan.
When you have secured an equity loan on your vacant property, you will need to proceed to a loan closing. The lender will want its name entered as the mortgage holder on the property with your local registry of deeds.
This ensures that you cannot sell the property to someone else without the lender being paid off first. You may receive the proceeds of the loan as a cheque, or the you can have teh money paid straight into yoru bank account- the choice is yours.
Please call us now for a free, no obligation, confidential discussion about a loan on your land on 0800 1699925 or ENQUIRE NOW and you could have the money in your account within 24 hours of the valuation being completed.
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Max APR: 67.35%. Representative Loan Example: Loan amount: £100,000, Rate of Interest: 41.88% per annum (fixed), Rate of Interest: 3.49% per month (fixed) simple interest Administration fee: £3,000 (3%), Total amount of credit: £97,000, Representative APR: 55.8%. Duration of the agreement: 6 months Total amount payable: £120,940*. Repayment of credit: one repayment of £120,940 in month 6 or alternatively a lower APR is available if interest payments due are paid monthly and not rolled up until the end of the term of the loan. * Loans can be paid back at any time with no penalties applied. Loan Term: Typically 6 months but with options available to extend the term A Pawnbroking Loan is not a long term financial solution. In the event that you are unable to repay your loan to Just Value It Ltd, the asset(s) that you used to secure your loan may be sold, in order to recover the outstanding loan balance, according to the terms and conditions of your signed loan agreement.