I have found a Hampstead investment opportunity but the bank cannot act quickly. Can Rikvin Capital fund it?

Yes. The Hampstead case here funded a £2.31 million asset acquisition for an investment company that needed to act fast to lock in the property. Hampstead and the wider NW3 / NW6 area are core lending territory for us, both for residential and mixed-use assets.

How fast can a Hampstead acquisition be funded?

2 to 3 weeks for a clean residential or mixed-use property where the borrower is known. The Hampstead investment company used the speed advantage to secure the asset before competitor buyers could organise traditional finance.

Are short-term loans cost-effective for acquisitions versus waiting for a long-term mortgage?

Often yes, when the alternative is losing the property. The total interest cost on a 6 to 12 month bridge is usually less than the value lost from a delayed purchase, a lost discount, or a missed income stream. Many of our borrowers refinance into a long-term mortgage within 6 to 12 months once they own the asset.

Securing Opportunities with Short-Term Bridge Loans | Rikvin Capital

Securing Opportunities with Short-Term Bridge Loans: A Hampstead Success Story

In the bustling property market of London, every second counts. It’s a place where lucrative opportunities can often pass by swiftly, only to be seized by those equipped with the right financial strategies. Recently, an investment company illustrated this fact to perfection, utilizing a short-term bridge loan to secure a valuable asset in the prestigious Hampstead area. Here’s an inside look at this success story:

The Golden Opportunity

Located in the opulent neighbourhood near Hampstead, London, a property with an asset value of £2,310,000 caught the eye of a savvy investment company. Recognizing the potential of this asset as a profitable venture, they decided to act promptly, a decision that demanded immediate financial action.

Crafting the Ideal Financial Solution

To facilitate the acquisition, the investment company required a significant amount of capital, and they needed it fast. Instead of opting for traditional financial avenues that might entail a lengthy process, they decided on a more efficient route — securing a short-term bridge loan.

The Bridge Loan Advantage

A bridge loan was sanctioned with a considerable amount of £1,515,500, encapsulating an LTV of approximately 65.58%. This financing method provided the flexibility and the speed required to close the deal swiftly, preventing any potential competition from stepping in.

A Six-Month Plan

Understanding the transient nature of the investment, the loan was structured with a tenure of just six months, offering the company the convenience to plan their financial strategies without being bogged down by long-term commitments. This short-term bridge loan facilitated a smooth transition, allowing them to manage their resources efficiently.

Conclusion

In the fast-paced world of property investment, having the agility to seize lucrative opportunities can often be the difference between success and missed chances. This Hampstead success story serves as a brilliant testament to the potential of bridge loans as a powerful tool in the arsenal of property investors.

With a short-term bridge loan, this investment company not only managed to secure a valuable asset but also positioned themselves advantageously for future opportunities, marking a significant milestone in their journey

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