These are some securities that are considered acceptable by most lenders. It’s worth noticing that while bridging finance for commercial property from a UK lender, the property should be based within the UK.
Here’s the list:
Houses, bungalows, apartments, maisonettes, HMOs, plots of land, retail stores, shopping centres, warehouses, factories, restaurants, cafes, hotels, pubs, hospitals, nursing homes, sports facilities, medical centres.
Though the list above covers a few options to use as security, it’s not complete and many other property types can be added to it, which can be used as security.
Coming to valuations, they are a vital part of the procedure. Lenders use them to assess the value of the property offered as security. Some brokers do arrange a valuation, but mostly it is to be provided by the lender.
Valuation reports may differ depending upon circumstances. These sometimes include automated valuation reports, full validation reports and drive-by valuations. They also provide the lender with all necessary information to calculate the loan to value ratio.
Planning Permission
Planning permission is often needed when you want to make a major structural alteration to a property, building on land, demolish a construction, or change the purpose of a property. It is important to ensure that planning permission is addressed before you apply for finance or second charge mortgage loans. As a part of the process, the local planning authority might also check with your neighbours about any objections. A necessary step for any prospective developer to investigate.
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