B’ is for Bridging Finance

It’s no secret that at Rodel we have a soft spot for worthy causes. One such cause is The Robinhood Foundation’s ‘Climbing for Classrooms’ initiative.
“With our ‘Climbing for Classrooms’ campaign, our vision is to create sustainable development which will provide lasting change in the community. Why? Because if we can begin to educate our youth and grow solid foundations from as early as possible, we can in fact change our children’s future and in turn our country’s future.” – Cindy Norcott, Chairperson and Founder at The Robinhood Foundation.
To contribute to this commendable cause visit the Robinhood Foundation’s website: Click here
In the spirit of education I have compiled a ‘plain-English’ guide to a few common terms used within the bridging finance industry;
Asset-backed Bridging Finance:
You have an immediate need for cash (for that dream kitchen, university tuition for your child, an amazing overseas holiday, the perfect family car etc.) but your investment at the bank only pays out in 6 months’ time. What do you do? If you have a freehold property Rodel will grant a loan facility against the security of a first covering mortgage bond.
Bridging Finance:
At Rodel we take the stress out of buying and selling by helping eliminate the waiting period on transactions. There are many instances we would be able to help you Rodel It;
You’ve sold your home and want access to the profit you have made, without waiting up to 3 months for the transfer to go through at the Deeds Office – Rodel It!
You’ve applied for a Further Loan at the bank and cannot (or simply don’t want to) wait for the funds to be paid out – Rodel It!
You’re an Estate Agent and you’ve sold a home, you would like the commission on that sale paid out a little quicker than is possible – Rodel It!
You’ve sold your old house and bought a new home, your bond is secured but you need to pay the outstanding Rates and Taxes on the old house. You know you’ve made a profit but need the cash NOW – Rodel It!
Equity:
Simply put; this is the profit you’ve made on your sale, the difference between the value of your property and your outstanding bond or the full value of your freehold property. Equity is essentially the value of the asset that you own (the portion you don’t owe to the bank)
Freehold property:
This would be a property that you own outright. Meaning that you do not currently owe any money on the house (whether it’s to the bank, a finance company or your mother in-law J). You own the full value of your property (we’re a little jealous).
Suspensive Conditions:
Suspensive Conditions can be found on the Offer to Purchase (or Sale Agreement) on houses being bought and sold. These are conditions that affect the transfer of the property. You may have stipulated in the agreement that the buyer of your property needs to have their finance in place within 21 working days; this is a condition that would determine how successful your application for bridging finance would be. These are the conditions that would need to have been met before you apply for bridging finance.
The world of finance can be overwhelming at times, the jargon confusing and the time limits seemingly impossible. Never fear, Rodel is here.
Whether you’d like to apply for bridging finance or would just like to find out a little more about your options, we are here to clear up the confusion and assist in trying to remove some of the anxiety that comes along with buying and selling property.
Give our team a call today, they’re ready and waiting to help you Rodel It!

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