What to know about bridging loans

In this article, we explain the different circumstances where bridging loans might be necessary.

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Which? has some useful advice on bridging loans:

https://mortgageadvisers.which.co.uk/other-mortgages/bridging-loans/. If you are considering a bridging loan, it pays to consult a professional adviser, who will often make use of software for financial advisers, to find the best deal.

Keeping a place in a chain

When the purchase of a property is funded out of the proceeds of another property’s sale, but the sale can’t be completed at the same time as, or before, the purchase, you might need bridging finance. 

Renovating, converting or restoring properties

Frequently, property is deemed to be unsuitable for a mortgage. This is generally due to poor condition, or because the property lacks a bathroom or kitchen. Bridging finance may be secured against such property. This helps landlords who want to renovate and then sell or rent out properties.

Excellent software for financial advisers can be found at Intelliflo.

Re-bridging

New bridging facilities can be arranged to replace loans that are nearing the end of their term, or have passed it. This may release funds and/or extend the loan term.

Buying an auction property 

If you win at auction, a 10 percent deposit is typically paid that day, with the remainder of the money due within 28 days. Bridging loans can be put in place quickly, guaranteeing that sales can complete in time.

When a must-have item comes along

Sometimes, in order to guarantee to secure a total bargain, a purchase needs to be completed fast. A bridging loan may be quickly secured against equity available in the property.

Solving short-term cash-flow problems

Cash-flow problems can occur for various reasons in business. A bank might call in your overdraft facility, customers may pay invoices late, or brand new equipment may be required unexpectedly.

Probate and inheritance tax issues

Sometimes, when you are dealing with probate and inheritance tax issues, funds may be required. Other reasons include having to pay taxes and bills, release charges on property, and pay off beneficiaries.

Buying property below market value

A bridging loan is helpful when you are buying property that is on sale for a price below its market value.

Property development

Bridging loans may be used to raise money for financing property developments.

Everything You Need to Know About the Letting Fees Ban and How It Affects Landlords

The Tenants Fees Act received Royal Assent on 12 February this year after progressing through Parliament since its introduction as a Draft Bill in November 2017.

property inventory

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One of the changes will be a ban on letting agent fees to tenants, who will only be charged for rent, deposit, and defaults under their contracts. Significantly, landlords and agents will be banned from charging for inventories and referencing. The fee to change a tenancy will also be capped at £50.

Although housing groups have broadly welcomed the changes, pressure groups within the letting industry claim that the new legislation could mean redundancies, while others are concerned losses can only be recouped by increasing rents.

Inventories

One of the issues landlords may wish to address immediately is how they go about taking inventories. They can save time and money by using property inventory software. But which businesses would use property inventory software? Any property companies.

Such property inventory software has proved increasingly popular with landlords since its first introduction and given that the service will no longer attract fees it could prove an essential investment.

tenancy deposit scheme

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The new Act also provides for a series of new fines applicable where the Act’s regulations are breached.

One of the main provisions in the Act changes the way deposits are dealt with. Tenants’ deposits will be limited to a sum which reflects six weeks’ rent and holding deposits will not be allowed to exceed one week’s rental income.

Misleading

Deposits will still have to be retained in an approved tenancy deposit scheme introduced in 2007. There are, however, circumstances in which a deposit can be retained by the landlord. These are if the tenant withdraws or does not take all reasonable steps to enter into the agreement, fails to pass the Right to Rent test or if they provide misleading information.

The penalties for breaches of the Act, introduced by the new regulations, are strict. The first offense is treated as a civil violation attracting penalties of up to £5,000. If a violation is repeated within a five-year period, the penalty could reach £30,000 or be treated as a criminal offense.

The new Act does allow agents to charge for some services. These include early termination of the rental agreement at the tenant’s request, covering the costs incurred.

Six Benefits of Business VoIP

VoIP is currently the favorite solution to moving away from telephone lines. Here are some advantages of using this technology.

Business VoIP

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Cost

Using VoIP will help to reduce costs because all calls are made over the internet as opposed to telephones lines, which can be costly to maintain. However, both the business and the customer must have and pay for an internet connection, which often requires a telephone line to be in place. Businesses can find the best package using a wholesale VoIP termination provider.

Flexible

Most VoIP applications can be downloaded on to mobile devices that can access the internet. This means that calls can be taken at any time, anywhere, providing that there is a stable enough internet connection. This technology has helped to improve home-based businesses and allow employees to work from home, as all that is required is the internet connection.

Business VoIP

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Quality

VoIP calls are HD quality, as they are made over the internet and not by using old telephone lines. This produces a conversation that is much clearer and allows businesses to ensure customer satisfaction. https://www.idtexpress.com/ has many packages available.

Device

VoIP allows businesses to adopt a ‘bring your own device’ policy whereby employees use their existing smartphones and mobile devices to download the apps on to. This reduces the business’s costs, as they do not need to purchase the devices to allow VoIP to be used. This will also help the business with its productivity. Employees are empowered to become more flexible with a new option available to them to work from home, on the move and when it suits them. (https://www.whichvoip.com/wholesale-voip.htm discusses further advantages)

Feature-Rich

As well as being an exceptionally functional and modern approach to allowing calls to take place between businesses and customers, VoIP apps also include a large range of features to increase the positive impact that the technology has on the business. Features include hunt groups, chat function, auto attendant, caller display, call divert and many more.

Future-Proof

VoIP allows businesses to be ready for the future without having to plan and financially prepare for any possible future technology developments. For example, it means that businesses will be able to continue to conduct business when ISDN lines are obsolete, which it is thought will happen within the next eight years.