Property Investor Hunting Licence
A property investor hunting licence allows you to react quickly to new opportunities and get one step ahead of your competitors. Get the best deal with ABC Finance.
Rated Excellent on Reviews.co.uk
A property investor hunting licence allows you to utilise the equity in your existing property portfolio as security for a flexible lending facility.
You can borrow and repay funds instantly and as you choose to act quickly on profitable transactions.
In this guide, we break down what a property investor hunting licence is, the key criteria and whether you could qualify.
Read on to find out more or get in touch for free, expert advice and a written quote within 1 hour.
What is a property investor hunting licence?
A property investor hunting licence is a flexible, pre-agreed facility, which is secured against your existing property portfolio and creates a pre-agreed ‘facility’ for you to lend against. The funds can be drawn down and repaid as you see fit, and are earmarked for you to use to transact on time-sensitive opportunities.
As the lender is not taking security over the new property, it allows you to buy properties that may otherwise be difficult to borrow against.
Historically, clients have approached us looking to buy a property quickly, under auction conditions. Generally, they use a bridge loan to complete the transaction on time, paying all the fees to do so before refinancing to cheaper debt.
This process is then replicated for each purchase, and the client gradually moves forward.
These facilities act as an alternative to frequently taking out new bridging loans, instead acting as secure funding that can facilitate fast completions.
Key criteria
- Up to 70% Loan to Value.
- Properties in a poor state of repair can be considered.
- Loans from £100,000 with no maximum facility limit.
- Pre-agree a facility for up to 3 years.
- Any security considered.
- Interest can be rolled into the loan.
- Loans with no early repayment charges available.
- We will consider any exit route.
- Adverse credit considered.
- Loans available throughout the UK.
Why go for a property investor hunting licence?
A property hunting licence allows you to purchase properties under value, extend and refurbish, or even buy currently unmortgageable properties. This gives you an excellent opportunity to add value to your portfolio, meaning you may well be able to borrow what you originally paid for the property.
Many investors are increasingly using this method to build their portfolios quickly, meaning they no longer have to save up a new deposit every time they want to buy a new property.
Are there any drawbacks to these facilities?
The key drawback centres around the costs of holding an open facility and not using the funds. Although they can save a lot of money when the funds are turned over regularly, they will be more expensive than other types of funding if they remain static.
If funds are to be drawn down and held for an extended period, then you may well be able to borrow funds more economically using a standard bridging loan.
If funds are often left unused, then you will be paying a non-utilisation fee for them, which you would not have with other types of borrowing. For longer term projects, a bridge to let mortgage may be a cheaper option.
