Who can apply for a loan?
Any business whose Director is an Academy member. Loans are only made to limited companies, not to individuals. The deal must be a business deal, not a personal residential deal. We do not make loans for personal residential purposes. They are purely business loans.
Can I apply if I’m not an Academy member?
No, at the moment, the loan facilities are only available to an Academy member’s business.
How quickly can I get approved for bridging finance?
Generally, we will give you a decision in principle within 72 hours.
How much can I borrow?
The minimum sum is £20,000 and the maximum is £100,000. Whatever the amount, it must not exceed 80% of the value of the property (up to 80% loan to value ratio) at any time during the term of the loan.
How much will it cost?
The standard costs are a 1% admin fee, plus a 1% exit fee. Our standard interest rate charged on the loan is 1% per calendar month for the first 6 months and 1.5% for 6 months thereafter.
When do I have to pay back the loan?
The standard contract is 12 months, so you have to pay the loan back within 12 months. As soon as full payment is made, our security over the property will be released.
Are there penalties for paying back the loan before 12 months?
No, there are no penalties for early repayment.
What happens if I default on my payments?
If you default on your payments and cannot make up the shortfall from other sources, you would have to sell the property to pay back the loan.
Do I have to provide security?
Yes, the property becomes the security for our loan. In the event of default, you would have to sell the property to pay back the loan.
What if I have a poor credit rating?
If the deal is a good one and we have strong security in the property, your credit rating may not affect your application at all. Every deal is considered on a case by case basis.
Do I need a solicitor?
Yes, as your property will become subject to a mortgage and the title will need to checked, although our legal requirements are standard and should be familiar territory to your solicitor.
How does Samuel Leeds Finance differ from other bridging lenders in the market?
We can usually approve applications faster than typical bridging loans (usually within 72 hours) and our loan to value of up to 80% is higher than most other lenders. We also base our decisions to lend predominantly on the deal itself, rather than over-focus on credit scores and experience, which directly benefits businesses which are new to property investing.
For more detail or to submit an application, please click here - Samuel Leeds Finance
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