Due to the commercial nature of bridging finance, extension requests are not uncommon and the reasons for the requests can be wide-ranging. The most typical reasons include:
- Planning applications have taken longer than expected to obtain.
- Refurbishment works have been unexpectedly delayed (eg the delivery of new windows is taking longer than expected).
- The borrower is waiting to exchange on contracts where a sale has been agreed.
- The borrower requires additional funds and/or time to complete his project (eg work to the building’s foundations was necessary but unforeseen at the time of applying for the loan).
- The borrower is waiting for a new lender to complete their due diligence before refinancing the loan.
- The buyer of the borrower’s property pulls out at the last moment, forcing the borrower to put the property back onto the market.
- The new lender refinancing the property pulls out at the last moment, forcing the borrower to find another new lender.