DEVELOPMENT

Bridging Finance

Bridging finance is a quick and uncomplicated way of accessing funds to commence, continue or complete a property development project.

80% LTV

80% maximum of the total acquisition costs.

3-18 Months

A minimum of three months and a maximum of eighteen months are available.

0.75% Interest

Rates begin at 0.75% per month and can be rolled into the loan or serviced.

Bridging loans are available and are an efficient way of purchasing assets in a short period of time.

In order to provide immediate capital while looking for longer-term funding, such as development finance, bridging loans are short-term loans with a usual term of 12 months that are secured against an asset.
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These loans are often utilised by real estate investors and developers to buy real estate and either apply for a change of use, alter an existing use, or apply for planning to increase value or make the property more advantageous to sell, develop, or renovate.

Key Features

Bridging finance is a quick and uncomplicated way of accessing funds to commence, continue or complete a property development project.

Loan sizes from £150k up to £100M.

All of the United Kingdom considered.

Terms from 3 - 18 months.

All types of residential, mixed used schemes and commercial property.

Experienced developers with a history of developing projects of a similar size.

20% personal guarantee, company debenture and legal charge over the subject property.

Acquisition, refurbishment, and exit facilities are available.

FAQS

Questions We Get Asked

Please get in touch with your advisor if you have any more queries.

How do I know im getting the best terms?

As an independent advisor, we offer specialist solutions from our extensive panel of lenders.

Before we procure terms for your project, we underwrite in house prior to presenting the scheme. This means that we know which lenders will be the most suitable for you as a developer and, ultimately, the scheme that you are funding.

Why wouldn’t a developer procure senior development finance from a bank?

This type of funding was discontinued by traditional high-street lenders previously, making it more popular with challenger banks and alternative lenders.

How much can I borrow?

Typically, you can borrow up to 80% of the existing property or land value.

Do I have to service the interest?

Interest can be rolled until maturity or serviced throughout the loan.

Does the loan have to be guaranteed?

Lenders will typically require a personal guarantee of 20% of the gross loan value, as well as a legal charge over the subject property and a debenture on the borrowing SPV (special purpose vehicle).