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Richard Butler Creagh: Bridging Finance in Europe

08:27

Richard Butler Creagh Explains European Bridging Finance

Welcome to the Richard Butler property blog. Here we share with you information why bridging finance is an important part of the property and business development in general. Richard Butler Creagh is a financial consultant who founded Henley Finance in 2013. In today’s blog, you’ll discover more about bridging finance loans.

In the UK bridging finance, it is one of the most popular short term financings for renovation/development of properties for a big uplift in value. It is not the cheapest way to finance a building project however it is a diverse financial tool. The main difference between the UK and Europe is the overall objective. A UK developer will turn to bridging finance when conducting a long term investment. In Europe, it is more used as means of temporary financing awaiting for completion of the sale.

The UK bridging finance is an unregulated financial instrument. It is aimed at business transactions and thus it is governed by the agreement between parties without any limits as to interest and fee charged. This free trade approach is not practiced in Europe and often there are certain restrictions to the relationship. Those include an interest cap, debt inheritance, and complex debt recovery laws. Those challenges are the main reason for the UK bridging market does not face competition from Europe and at the same time can not expand into Europe. Further, with Brexit on the horizon, it seems that it will get even more difficult.

It seems that on the international arena the UK accepts assets from abroad but this does not necessarily work the other way around. The European financial instruments are more restrictive on the security and often reject them from other jurisdiction due to differences in laws. One solution to overcome this problem is to use an international firm with offices in multiple jurisdictions as those have the expertise and knowledge of the laws in both jurisdictions. This is often an expensive solution.

The arrangement of the birding finance is rather simple. The facility is released to the borrower with security in property and occasionally against high-value movables like vehicles. The short term nature of this type of finance overcomes the issue of the exchange rates fluctuations. A great example of how this can be a problem is the long term mortgages in Swiss Franc which over 6 years has almost double in value. In essence, this has created a situation where mortgages had a higher value than the security against them. In these situations, bridging finance can be of use to try and refinance the property with an alternative mortgage scheme. Perhaps the reason why the UK is so willing to accept the securities from aboard in places like Spain, Portugal, and France is that it is mainly British citizens who are using this facility of finance.

Got more questions about bridging finance? Ask them now through the comment section below

Henley Finance has experience in the international arena and often provide a financial facility over security in Europe. Find out more about Richard Butler Creagh and Henley Finance here. Join our professional network by connecting with the official Richard Butler Creagh Linkedin page and read the Richard Butler Creagh news here

“We make sure our investors are protected so that no one project can affect another. The borrower gets protection on the basis that we don’t take anything on unless it has stood up to our due diligence process and is viable. We are rigorous but in the end everyone benefits. Our aim is to help all sides of the project thrive.” – Richard Butler-Creagh, 2017.

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Business Finance

Richard Butler Creagh: Business Infrastructure Property Loan

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Richard Butler Creagh on Commercial Property Loan

Welcome to Richard Butler Creagh Blog. Richard Butler Creagh is a property and Finance Consultant. Read on to find out more information about commercial property loan, which can help you build your business infrastructure.

If you are a self-employed whether it be a Lawyer, Doctor or Businessman you need a proper workplace where you can work with a peace of mind and an environment which gives you inner motivation towards your work. To purchase such a commercial property it is a bit difficult as the price of such property is comparatively higher than a residential property and people generally opt for business loans to fulfill this need. However, to overcome such a problem - a commercial property loan will help you own a workplace of your choice so that you can take a step closer to your business goals.

What is a Commercial Property Loan? It is basically financing a fixed property used exclusively by a borrower to purchase a property for the commercial use. A borrower can take the loan and then provide it for rent as well. This includes property for office and general commercial accommodation.

Commercial Property Loan can be availed for the following purposes:

Construction of an office, marts or shops
SMEs for building their business infrastructure the premises for work
The purchase of property for operating business
Developers of properties for rent to SMEs
The Commercial Lending Process
The purchase of a new office
The purchase of a shop and clinic
The extension, improvement of an office or clinic

Key criteria considered by the lenders for lending a commercial property loan are-

The type of commercial property for which loan is to be availed – it includes checking about whether it’s a factory, office, warehouse or shop-front and its location, together with a value report. Applicant’s capacity to repay – This includes all of your income. Applicant’s deposit and any available equity

What Should You Know in Advance?

Specialized Commercial Lenders. Commercial loans may be less familiar with most of the people, but there are many loan options available from a range of specialized lenders for a commercial property loan. Interest Rate. Commercial property is often granted at higher interest rates and more restrictive conditions than residential property loan.

Lower Loan to Value Ratios on Commercial Loan = Larger Deposits. Where in a residential property you can borrow up to 90% of the value of the property (LVR). But in a Commercial property loan, you can borrow normally only 70%. This means you need generally a larger deposit or the other possible thing is be able to access more equity.

Shorter Loan Terms. A typical home loan tenure is generally 30 years, whereas for a commercial property it is generally between 15 to 20 years only. As a consequence of this- the borrowers need to show a lender a greater capacity to repay, as the repayments will be higher as the principal will need to be paid down in a much shorter time period. All this leads to a high EMI.

Check back for more property loan tips,

Richard Butler Creagh has been in the bridging lending business for many years. He became involved with this sector through his experiences in buying and selling his own properties. He soon realized that the most important part of this process was to be able to have the availability of good financing. Learn more about Richard Butler Creagh the founder of Henley Finance. Read more about Henley Finance which is a bridging lender company that invests in UK property here. Connect with Richard Butler Creagh through his Linkedin page here.

You can also watch Richard Butler Creagh Youtube video here:

brexit

Richard Butler Creagh: What will Brexit mean for house prices?

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Richard Butler Creagh on Brexit house prices.

Welcome to the Richard Butler Creagh blog. Richard Butler Creagh has been in the bridging lending business for many years. Much has been written about the impact of the UK’s housing market that leaving the EU without a deal could send house prices tumbling by a third. Some regions have boomed, while foreign investors continue to keep faith in the UK. In today’s blog, we bring you the insider’s guide to what experts from the estate agents think will happen over the coming months.

Many business leaders and financial experts have expressed concerns about the potential consequences of a no-deal Brexit. House prices did stagnate for a while. This could well have been down to the usual pattern of prices growing in spring and plateauing over summer, which we also saw in 2017. But, with Brexit looming ever closer, house prices suffered a bigger post-summer dip than usual in 2018, dropping from a peak of £232,797 in August to £230,630 in November.

Looking at year-on-year house price change over the long term can be another useful way of understanding what the market’s doing. It has continued to decrease in England ever since However, there was more significant growth in Wales and Northern Ireland.

It’s worth bearing in mind that, even if the rate of growth has decreased, house prices themselves haven’t – and many argue that the slowdown in England is simply a long-overdue market correction.

Another way of judging the health of the housing market is to look at transaction volumes and Two commonly used measures of how the market is performing for sellers are stock per branch – which is the average amount of properties on each estate agency’s books – and time to sell.

Housing expert, Kate Faulkner said: ‘We’ve definitely seen a stagnation in the market over the last year in areas such as London, the South, and East (which had all overheated) and this slowdown has spread to other areas over the last few months. Buyers are holding back in the hope that prices will fall. But it’s not only demand that’s dropping – supply is, too, with many people battening down the hatches until we have a clearer picture of what’s going to happen. ‘This can limit the likelihood of decreasing house prices, but also mean that few moves, as there’s little choice on the market for would-be sellers. However, if you’re considering buying somewhere for the short term it’s more complicated. Transactions are likely to drop over the next few months and it’s possible that interest rates could jump back to their pre-credit crunch levels of 6-7% if a no-deal Brexit causes issues.
In terms of the buy-to-let sector, demand from landlords has already reduced so it’s unlikely we’ll see further falls this year. And, while tenant fees are being banned from June, rents are likely to rise further due to lack of stock, meaning now isn’t a particularly bad time to be a landlord as long as you really understand your objectives and whether the deal stacks up both now and in the long run.’

As it stands, the only thing that’s clear is that nothing is clear, and you’d be justified in having no idea whether now is the right time to buy, move, invest or remortgage.

Richard Butler Creagh is the founder of Henley Finance. Find out more about getting the right finance for you on the Henley Finance website here. Follow the Richard Butler Creagh Twitter page for the latest news on bridging finance here. Learn more about the work of Richard Butler Creagh here.

bridging loan

Richard Butler Creagh: Things to Consider Before Taking Out a Bridging Loan

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Richard Butler Creagh Shares Things to Consider Before Taking Out a Bridging Loan

Welcome to the Richard Butler Creagh blog. Richard Butler Creagh has been in the bridging lending business for many years. Before talking to an expert about your requirements for bridging finance, there are a few other factors to consider. Essentially, bridging loans are designed to be a route to raise money quickly and, as such, should be thought over carefully. Consider these points before applying for your bridging loan:

Understand what is available. When looking to take out a bridging loan, especially for the first time, it is important that you understand how the loan works and what the likely costs are.

Consider how you will repay before taking it out. When selecting the term of your bridging loan, it is easy to go for the shortest possible time frame in an attempt to reduce the amount of interest paid or maximize the net loan. If the loan term ends and you are unable to pay it back as agreed, you will be in default of the loan and may well be penalized financially.

Choosing the right solicitor. Picking the right solicitor is crucial to ensuring the loan completes on time and without issue. Your solicitor will act as the sole liaison between the lender and yourself when it comes to your understanding of the legal terms of the loan. With this in mind, it is advisable that your solicitor is well versed in dealing with bridging loans.

Bridging loans are a great option if you need to move quickly to buy a property. Like any other home loan though, it’s not a debt to be taken on lightly and it pays to speak to a professional mortgage broker so they can provide the right recommendations to you. Whether you are a first home buyer or a sophisticated investor we can assist with a detailed, tailored approach to your investment finance.
Contact Richard Butler-Creagh on the Henley Finance website. Read more about Richard Butler Creagh online here. Like the official Richard Butler Creagh facebook page here and keep up to date with the latest posts.

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auction finance

Richard Butler Creagh: How to Finance Property Development Project

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Richard Butler Creagh Shares How to Finance Property Development Project

Welcome to the Richard Butler Creagh blog. Richard Butler Creagh has been in the bridging lending business for many years. If you’re a property developer, investor, or landlord, there’s a range of finance available to help you kick-start your next project. But even for experienced developers, the alternative lending market can feel large and complex. In today's post, we’ll run through some of the things to think about so you can make the right financial choices.

Commercial Mortgages. Commercial mortgages can be used to purchase commercial property. They work the same way as private mortgages, helping you spread the cost of a large purchase over time. A typical example could be an architect who wants to buy the building where he practices, instead of paying large amounts of rent, he would prefer to own the property, but can’t afford to pay for it outright.

Auction finance. Auctions can be a quick way to get a property at a discounted price, and there are lenders who specialize in auction finance. Once you’ve made the winning bid, auction houses usually require the funds within 28 days, which means you have to move fast to secure funding. There are also lenders who’ll give you finance before you attend an auction so you can arrive prepared with an 'agreement in principle' this type of arrangement can be particularly useful for experienced and established developers.

Bridging finance. This can mean any short-term funding that helps pay for building and development costs. These two terms have significant overlap and might seem interchangeable, but there are differences between the two. The main thing that determines if you need bridging finance or development finance is how ‘heavy’ the project will be.

As you can see, property development is a complex area, especially when it comes to financing. whether you’re buying your company’s premises, or growing your rental portfolio best first step to take when determining what type of finance you need is to assess how extensive the project is, how long it will take, and how much it is likely to cost — in both the best- and worst-case scenario. Contact Richard Butler-Creagh on the Henley Finance website. Learn more about the Bridging and Commercial app here and follow Richard Butler Creagh on our Twitter page. Show your support online!

You can also watch this Henley Finance video here and see what we can offer you:

Business Finance

Richard Butler Creagh: How to Stop Overspending

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Richard Butler Creagh shares tips on how do you stop yourself from overspending

Welcome to the Richard Butler Creagh blog. Technology has given consumers revolutionary access to shopping opportunities. You can shop at any time of the day, literally! From your phone or tablet, debit, credit, store cards, gift cards and etc. The list is endless. There probably has never been a tougher time to resist the temptation to overspend. A few impulsive clicks and your carefully planned monthly budget is dead. So the immortal question is how can I limit my spending?

Since the root of the problem may be the limitless access to opportunities for spending money, try these following tips from Richard Butler-Creagh – a financial expert:

Focus on savings first

Send direct deposits into a savings account. Most people have their paychecks deposited into a checking account, where their salary becomes immediately available for spending. Instead, have your paycheck go into savings, and transfer only a budgeted amount every month into checking to meet your expenses.

Give yourself a cash allowance

Electronic transactions can be hard to keep track of on the fly, and they don’t give you an instinctive sense of when you have spent too much. Try using cash for daily expenses, subject to a budgeted allowance amount. This will make it more obvious when you have run through your budget for the week.

Dump the cards

Get out of the practice of carrying credit and debit cards with you at all times. Consistent with the idea of doing things more on a cash basis, leave the credit and debit cards in a secure place and take them out only to make budgeted purchases. Consider also dropping time-saving measures like “one-click” shopping where you store all your credit card information with an online retailer. Make shopping online harder to accomplish, not easier.

Compare prices

Don’t buy things until you have three price comparisons. When you do buy something out of the ordinary, make yourself shop around. You might save by finding a better deal, and in any case this discipline may slow you down enough for some spending impulses to wear off. Yes, hunt for the online coupon!

Modern technology allows spending money to occur almost quickly. What the techniques listed above all have in common is that they attempt to slow down the process of spending money. The idea is that with a little more time to think, you might make wiser decisions about how to spend your money.

Learn more about Richard Butler Creagh, the founder of Henley Finance. Read more about Henley Finance which is a bridging lender company that invests in UK property here.

You can also watch Richard Butler Creagh Youtube video here: