How to Buy Freehold Property and Boost Profits by Title Splitting Using Bridging Loans
Are you looking to maximize your property investments but don’t have the upfront capital to do so? Bridging loans could be the secret weapon you need to purchase freehold properties and increase their value through title splitting. This strategy allows you to unlock higher profits while minimizing initial financial barriers. In this guide, we’ll break down how you can leverage bridging finance to boost your investment returns.
What Are Bridging Loans and How Can They Help You?
Bridging loans are short-term financing solutions designed to help property investors complete purchases quickly, often when traditional mortgage financing isn’t an option. These loans can be used to purchase freehold properties and fund refurbishment or restructuring projects before securing a longer-term financial solution.
By using a bridging loan, you can:
- Purchase properties without the need for immediate full funding
- Fund development and renovation works
- Unlock the full value of a property through title splitting
- Refinance at a higher value once improvements are completed
For inexperienced property investors, bridging loans provide an effective way to enter the market with minimal upfront capital while significantly increasing asset value.
What Is Title Splitting and How Does It Increase Property Value?
Title splitting is a property investment strategy where a single freehold property is legally divided into multiple leasehold units. This approach is commonly used for large houses, commercial buildings, or mixed-use properties that can be converted into flats, offices, or other independent units.
Benefits of Title Splitting:
✔ Maximizes Market Value – Splitting a property into separate titles often results in a significantly higher combined value than the original freehold.
✔ Attracts Different Buyer Types – Individual units appeal to a wider range of buyers and investors.
✔ Boosts Rental Income – Multiple leasehold units generate more rental revenue compared to a single property.
✔ Provides an Exit Strategy – You can sell individual units for a profit rather than waiting to sell the entire property.
Bridging Loans for Title Splitting: What You Need to Know
To make title splitting feasible, you’ll need a bridging loan that supports both the purchase and conversion costs. Fortunately, specialist bridging lenders offer financing solutions that cater to property investors looking to enhance property value through restructuring.
Key Features of Title Split Bridging Loans:
- Loans up to 70% of Open Market Value (OMV) or Split Values – This means you can secure funding based on the future worth of your split titles.
- Lending up to 100% of Purchase Price and Works – With the right deal structure, you could finance the entire purchase and renovation costs.
- Loans up to £2m (or £5m in exceptional cases) – Ideal for both small and large-scale projects.
- Lending Based on OMV from Day 1 for Commercial and Semi-Commercial Properties – Includes hotels, aparthotels, and mixed-use properties.
How to Secure a Bridging Loan for Your Title Split Project
Step 1: Find the Right Property
Look for freehold properties with strong title split potential. Ideal candidates include large houses, commercial buildings, or mixed-use properties in high-demand areas.
Step 2: Work with a Specialist Bridging Lender
Traditional banks may not finance title splitting projects, but bridging lenders specialize in these transactions. Sunrise Commercial provides tailored bridging loans to suit your investment strategy.
Step 3: Assess Loan Eligibility
Lenders typically evaluate:
- The property’s current Open Market Value (OMV)
- Potential post-split values
- Your experience and exit strategy
- Required funds for purchase and development
Step 4: Secure Funding Quickly
Unlike traditional mortgages, bridging loans can be arranged swiftly—sometimes within days—allowing you to act quickly on investment opportunities.
Step 5: Complete Title Splitting and Maximize Returns
Once your bridging loan is in place, proceed with title splitting and any necessary renovations. When the project is complete, refinance with a long-term mortgage or sell individual units for profit.
Why Use Bridging Loans for Title Splitting?
- Speed – Secure funding fast and act on lucrative deals.
- Flexibility – Tailored solutions to fit your property strategy.
- High Leverage – Access up to 100% of the purchase price and works.
- Maximized Profits – Unlock hidden property value and increase returns.
Get Started with Bridging Loans Today!
If you’re ready to take your property investment to the next level, a bridging loan for title splitting could be your key to success. Whether you’re purchasing a commercial property, a semi-commercial building, or a freehold house with potential for multiple units, Sunrise Commercial can help you secure the right financing.
Don’t miss out on valuable property deals – explore your bridging loan options today!
Visit Sunrise Commercial to find out more and start your investment journey now.
#BridgingLoans #PropertyInvestment #TitleSplitting #FreeholdProperty #RealEstateFinance #UKProperty #PropertyDevelopment #InvestmentStrategy #CommercialProperty #SemiCommercial #PropertyInvestors #RealEstateFunding #BridgingFinance #PropertyWealth #SunriseCommercial