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Israeli property investors use UK bridging loans

Posted: August 6, 2018

According to a July 2018 report in the Jerusalem Post, several property investors from Israel are using British bridging lenders to secure funds for property purchased in the UK.

A high-profile example is Nochi Danker, one of Israel’s richest men, who borrowed £45m to purchase office property in Broadgate, London.

Israel investors often purchase property then use a bridging loan to renovate or repurpose a building, which is then sold for a profit and the loan is repaid.

The Jerusalem Post report notes that Israel property investors are not required to submit their credit history, as lenders judge the loan risk by the value of the property and its potential for capital growth.

Investors from Israel generally receive the same terms and conditions for the bridging loans as other overseas and UK investors. If they fail to repay the loan, the property can be repossessed. Interest rates vary from 0.44% per month to 2% and there are administration fees and broker fees. The Jerusalem Post says that there are early repayment fees, but brokers can find loans that do not have early repayment fees. The Jerusalem Post notes that bridging finance is especially suitable for property deals that have tight deadlines, because they can be arranged quickly and repaid when finance becomes available.

A bridging finance broker can find deals for borrowers from the UK and overseas. A face-to-face meeting is an option, because of telephone, emails and other digital means of communication provide alternative options across long distances.