Our Products
If you opt to submit your case to us, we will endeavour to always offer you the best and most competitive products from our panel of selected Lenders.
We see ourselves as an extension of your business and hope you will too. We can act as the gateway to and find you competitive finance solutions, matching your needs. Although our area of expertise is specialist property lending, we have exposure to alternative finance products. The main types of situations we can assist with are detailed below.
LAND ONLY BRIDGING
Buying land for development is a common practice for property investors, yet if the land has no current planning permission it can be challenging to secure finance to fund the purchase. Bridging loans to buy land provide a funding method for developers looking to buy sites with or without planning permission. The land can be used for any purpose, including building residential homes or commercial properties. Speed can be key. These types of loans can be used for buying building plots quickly, as it can take months for long term finance to be arranged. Building plots are usually sold quickly to developers, so interested parties need to act quickly. Leveo has exceptional relationships with their Lender panel, which means you can be approved with non-binding terms on the day of application, which means we can provide an ideal solution for quick land purchases. Additionally, a bridging loan can be used for the initial land purchase and then refinanced with a development finance product. Keeping your finance with the same Lender can be beneficial. Please note that Leveo are unable to offer loans against land for an individual’s personal place of residence.CONSIDERATIONS
During the loan approval process, Leveo will ensure there is a good exit strategy in place. This may be achieved through selling the properties built on the land, or through long-term refinancing options. Loan terms are generally between 6-12 months, they can be up to 24 months Leveo as your broker, will always look to negotiate the best entry and exit terms we can for all clients. Leveo always looks at each application holistically and on a case-by-case basis, even if the land does not have any existing planning permission.COMMERCIAL BRIDGES
Investors looking to purchase commercial property often have to act quickly. If finance is already tied up elsewhere within an existing portfolio, buyers may need the option to acquire appropriate funding quickly or risk losing out on a purchase. This is where commercial bridging loans can be a helpful solution. Long term finance can take several months to secure. Many of the best opportunities present themselves with a change of use and/or add value potential. The most experienced and successful commercial property investors often recognise this and that’s where using Leveo and their deep understanding of the investment market can help to secure you finance. Leveo can take into account the specific circumstances around the asset and borrower, allowing for more flexible lending. This is one of the reasons property investors may choose a bridging loan for funding commercial property transactions.CONSIDERATIONS
Given the borrower has an exit strategy in place, which is usually refinancing the property with longer term finance, or selling the property before the end of the bridging loan term, an application can be considered. The borrower will need to provide security to act as collateral against the loan. Applications, where the borrower has significant capital entered into the transaction, will be viewed favourably. Our Lenders normally provide loan terms between 6-12 months. The borrower is not tied into the full term but can pay off the loan at any time within that period. Existing leases and current tenants will also need to be considered. Leveo will work through all the necessary considerations with you that are important to the Lender panel and present your case in a focused and effective manner.WHAT IS A BRIDGE-TO-LET LOAN?
A bridge to let loan is another term for a bridging loan that will be specifically used to buy a property to rent out. Investors can buy any rental property with a bridge-to-let loan, including residential and commercial. This type of funding is a short-term option that helps bridge the gap while organising long term finance.
The buy-to-let market is very competitive and when property investors spot a good deal, a quick purchase often has advantages., Bridge-to-let loans are usually approved within a short timescale allowing property developers access to funds for purchases quickly.
Properties that could be viable as a buy-to-let often come available through auctions, although they may require extensive refurbishment before being rented out (often falling outside of many lenders criteria). Bridging loans can be used when buying properties at auction which are presently not habitable. Unlike most traditional mortgage lenders, the application process for Bridging loans does not typically discount uninhabitable properties.
CONSIDERATIONS
The borrower will need an exit strategy in place, which is usually refinancing the property with a longer term buy-to-let mortgage or sale
The loan term is generally between 6 – 12 months. Leveowill work through all the necessary considerations with you that are important to the Lender panel and present your case in a focused and effective manner.
AUCTION LOANS- USING BRIDGING FINANCE TO BUY AT AUCTION
Buying at auction is a different experience compared to purchasing a property through a more traditional method.
Buying at auction starts with the catalogue. After reading the publication there is time to view, study the legal pack and possibly complete a house survey. Auction property is then sold immediately on the sale day. When the hammer goes down, the buyer is fully committed to the purchase and has to usually pay around a 10% deposit of the purchase price immediately, with the balance due within 28 days. The deposit amount and timeframe for payment may vary from these.
As it can be difficult to procure a mortgage in such a timeframe, particularly if the property is uninhabitable, many investors turn to short-term auction finance options to enable them to buy quickly. Bridging loans for auction purchases are short term funding options that help bridge the gap while long term funding is secured. Applications are often approved in just a few days. The loan period is generally 6-12 months, although typically it can be repaid at any time.
COSIDERATIONS
The quick turnaround required for auction purchases means it can be challenging to secure funding to purchase an auction property within the timescales. The auction loan fills this gap with its quick completion time for loans, from application to approval. A swift decision is guaranteed on all applications, ensuring the funds are in the bank immediately after the approval and legal process has completed.
BRIDGE TO TERM
A unique product we can offer our clients is a Bridge to Term product. A common predicament we hear from our clients is that they are not able to obtain finance once they have completed development or refurbishment works, which would act as a refinance for their initial bridge loan they used to purchase the property.
The Bridge to term product allows investors to purchase an asset quickly, provide them time to get planning and complete works to enable the asset to be income producing. The property would normally be unable to show historic rental figures that would usually assist the client getting longer term bank finance.
At this juncture Leveo can then look to move the client from their current bridge loan onto a 3-5 year term product (this would normally be expected to be at a rate lower than the Bridging loan) as the asset is income producing and monthly payments can be made from the rent.
This is a key benefit to using Leveo’s exclusive Lender panel as we have access to this product, which is not currently widely available as an option in the market.
Development Finance
Development Finance is a popular form of short-term finance used for property development and construction projects. It can fund the purchase of a plot of land with planning permission, or an existing building renovation. It can also be used to cover the associated costs of materials and labour for both residential and commercial developments. Development Finance schemes are available to new, first-time, or experienced property developers. This flexible finance is used for ground-up developments such as building on land, although can also be used for heavy property renovations, such as a barn conversion or property layout changes.
Considerations
Unlike a traditional mortgage lender that will consider the value of the property, a development finance lender will take the value of the completed property into account.
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