Home extensions provide financing opportunity for brokers and homeowners, says Alternative chief

Alternative Bridging CorporationBridging Finance

Talk to our bridging finance experts

Call us on 0207 043 5271

or enquire now

Home extensions are a financing opportunity for brokers and homeowners, says Brian Rubins, Director of Alternative Bridging Corporation.

Brian Rubins Alternative Bridging Finance

Mr Rubins says one reason is that although the sales market has become lethargic there is a shortage of available stock and a dearth of new houses being constructed, adding:

"Because of this shortage, except in prime central London, it still mainly remains a 'sellers’ market'.

"Add to this, moving schools and the emotion and effort resulting from a move and there are three reasons to improve an existing home and to be a 'remainer'.

“Another reason is totally financial with agents, legal fees, stamp duty and removal costs being costs for which there are no tangible benefits - so it is easy to see that a home extension could be better value.”

For these reasons, builders are busy adding rooms over garages, undertaking loft extensions and digging out basements. He continues: “Home improvements are big business but how are they paid for? There is a top-up of the existing home loan or if the terms or pricing of the existing loan precludes this, refinance or a secured second charge from another lender are both viable options.

“However, often timing causes a problem. Maybe the new loan is not available until the work is completed, then bridging finance can fill the gap. This may involve repaying the existing mortgage or borrowing secured by second charge. Depending on the equity in the property, the bridging loan can be advanced in full or released in tranches as work progresses and interest accrued, all repaid from the new loan.”

Carl Eldridge is a journalist with more than 25 years’ experience working on local and then national newspapers, including a spell on the City Desk at the Daily Express, before switching from print media to the internet.

Association of Bridging Professionals

bridging.com is brought to you in partnership between Falbros & Tiger Financial.

Falbros Ltd is authorised and regulated by the Financial Conduct Authority under reference number 745807.

Registered office: 1 Mayfair Place, London, W1J 8AJ. Registered in England Number 8147460.

Tiger Financial Ltd is registered in England and Wales, company number: 10225910. FIBA No: FIB39306.