Borrowing

We accept UK Limited companies, although a personal guarantee and debenture are required.

You can approach us directly for all bridging loan inquiries, however, we will not be able to provide you with any financial advice. If you require advice before requesting a loan, you should speak to your independent financial advisor or visit www.unbiased.co.uk to find an advisor near you.

Yes, including sole traders, partnerships, and LLPs.

The borrower must provide a satisfactory exit route to Kuflink to confirm how the loan will be repaid, which, for example, maybe through selling the property or refinancing.

Who is the security held by?

Kuflink Bridging Limited originates the loan on behalf of Kuflink Limited and Kuflink Limited offer these loans to our investors through our platform. The security is held in trust by Kuflink Security Trustees Limited (a non-trading company), for the benefit of our investors, until such time the loans are redeemed.

We accept 1st and 2nd charges at our discretion.

In a mortgage by legal charge, the borrower remains the legal owner of the property, but the creditor gains sufficient rights over it to enable them to enforce their security (e.g. to take possession of the property or sell it). The debtor in this instance can be first in line or second in line; for the second charge, the creditor will need consent from the first creditor to place a charge on the title.

Bridging loans are a great solution when property investors are looking to raise finance, they usually run from 6-18 months and provide a fast and flexible form of funding that enables investors to source short – term finance. Bridging finance is available to individuals, partnerships & UK limited companies.

Bridging finance is usually available for up to 75% loan to value and has variable rates, application fees, administration fees and broker fees. Unlike a traditional bank loan for mortgage, the monthly interest is often rolled into the loan, so there are no repayments to make during the term of the loan.

Borrowing can be available as either first or second charge on a property, lending on residential properties, commercial & semi commercial properties, and land with planning permission.

Bridging finance can also provide a source of working capital for businesses and property investors. This capital could be used for a range of purposes, including property improvements, expansion plans, equity for a property purchase, investing in equipment or even paying a business tax bill.

In the UK, a debenture is a name given to a security agreement that sets out the terms under which the borrower provides security to a lender. It is usually given in respect of a company rather than an individual.

A lender may require security from a borrower to confirm the obligation of the borrower to repay the lender the amount that is owed in the loan agreement.

Debentures may be used by the lender to take security over some or all the borrower’s assets.

Mezzanine loan bridges the gap between debt and equity financing and is one of the highest-risk forms of debt—being subordinate to pure debt but senior to pure equity.

MEZZANINE LOAN RISK WARNING:

• You could lose all your money investing in these products as these are the highest-risk forms of debt.

• We only do second charge mezzanine loans if Kuflink has the 1st charge.

• This product is not available to Everyday investors

Order of Priority

Order of Priority, when capital and interest are repaid.

Whilst the whole loan is secured by way of a 1st or 2nd legal Charge over the security property, the charges are ordered by priority. Lenders who have lent funds in 1st charge will be paid first on any capital and interest repayment, then 2nd charge, then 3rd charge, and then 4th charge. When Lending Mezzanine Loans, you and all lenders in all the Mezzanine Loans of the security charge are accepting the order of priority when you invest.

A personal guarantee is essentially a written agreement whereby the borrower makes themselves personally liable for a debt. If they personally guarantee the debts of their business, the lender can take ownership and dispose of the assets owned by the business as well as the borrower’s personal assets if they default on the loan.

The maximum LTV we will consider is 75%.