bridging loans

Discussion in 'General Discussion' started by JulianP, 11 Jan 2014.

  1. JulianP

    JulianP

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    In purely general terms, would I be correct to think that a property survey demanded by the bridging loan company would be to establish that the property value was equal or in excess of the loan value? The loan therefore being secured.

    ie for a loan to value ratio of (say) 25% on a property valued at 100K then providing the loan company surveyor's valuation was in excess of 25K then there should be no fundamental problem with granting the loan.

    True or false?

    Julian
     
  2. Bosswhite

    Bosswhite

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    I would have thought the ability to pay the new loan would be a priority
     
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  4. JulianP

    JulianP

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    Yes indeed, a fairly fundamental issue! Though it could be argued that the disingenuous money lenders would probably secretly welcome a default on a secure loan as at the end of the day they will make certain to be quids in when finished.

    I was more hoping for a reply that addressed my issue, rather than general points regarding loans.

    Julian
     
  5. Whitespirit66

    Whitespirit66

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    True.

    You can get a basic homebuyers survey and valuation, which will be the bare minimum to satisfy a lender. This will look at the structure and assess the market value of the property as it stands.

    Older, listed or renovation properties will probably need a full survey, probably more for the buyer's peace of mind, but lenders occasionally specify these types of surveys too.
     
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