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Early Stage Development Bridging Loans

Early Stage Development Bridging Loans

by | Jul 3, 2025

Starting Development Projects Strong with Advanced Planning

At BLG Development Finance, our early stage development loans support property developers looking to initiate new projects with speed and confidence. These short-term, flexible loans provide vital capital to support your early phases of development including land acquisition, planning promotion and pre-construction costs. Working with us, means accessing funding at the start of your development’s lifecycle allowing you to move quickly on opportunities, progress through planning and prepare sites for build – without waiting for full development finance to be in place.

Empower your project’s potential by acting decisively with our early stage development loans. Get in contact to speak to a member of our team and learn more about how this short-term financing solution can unlock your development’s potential from day one.

12 months

Loan term up to 12 months

65%

Lending to 65% Loan to Gross Development Value including interest

£10,000,000

Loans from £500,000 to £10,000,000

Multiple houses under development

Key Loan Features

  • Loan Size: £500,000 to £10,000,000
  • Loan Term: Typically up to 12 months; longer terms may be considered
  • Loan-to-Value (LTV): Generally up to 65%, including interest (subject to assessment)
  • Security: Typically secured via a first legal charge over the site or asset
  • Rate Structure: Based on deal complexity and loan size

 

As a leading lender specialising in property finance, our expertise encompasses a wide range of funding options, including residential and commercial development finance and GGS funding supported by the British Business Bank. Contact a BLG team member today to find out more on how BLG can help your next project.

Typical Uses of Early Stage Development Finance

Our early stage bridging development loans are able to support a wide range of development activities in the pre-construction and planning phases including:

  • Land Acquisition Loans: Secure prime or strategic land quickly with upfront capital
  • Planning Promotion Funding: Finance to progress or enhance planning permissions
  • Site Preparation: Cover costs for surveys, groundworks, and enabling works
  • Strategic Land Holding: Maintain control of a site while awaiting planning uplift
  • Planning Gain Bridging: Fund projects in the planning pipeline ahead of main build finance

We also work with developers on sites with limited or conditional planning consents, offering bespoke lending structures that reflect the true value potential of the site.

 

Choose BLG for Pre-Construction Development Funding

Our early stage development loans are structured to give developers the flexibility to acquire, plan, and prepare sites efficiently, unlocking long-term value from the outset. Whether you’re assembling land, securing consent or gearing up for construction, BLG delivers fast, dependable funding paired with sector insight and responsive service.

If you’re planning your next scheme and need reliable early stage property finance, we’re ready to help. Contact our team today to explore your options and see how our tailored solutions can bring your project to life.

Contact Us Today

    Projects Funded With Bridging Loans From BLG​

    Bridging Loan for Victorian Terrace House in Battersea
    Kitchen with island and dining table

    WHAT OUR CUSTOMERS SAY ABOUT US

    "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

    “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

    “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

    “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

    "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

    “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

    “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

    “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

    “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

    “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

    “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

    “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

    “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

    “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

    “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

    “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

    Tell us how we can help you.

    Development Exit Bridge

    Development Exit Bridge

    by | Jul 3, 2025

    Unlock Capital to Extend Your Property Development Opportunity

    Our Developer Exit Loans are purpose-built to support property developers, in both residential and commercial projects, who have reached the finish line on one project and are ready to start on the next. These short-term, strategic loans will enable developers like you to refinance your development loans once a scheme has reached practical completion, without needing to wait for all units to be sold.

    Commonly used for refinnancing completed/near-completed developments, as well as releasing funds for purchasing new project sites, this type of development exit finance will provide you with the flexibility to reduce costs, release equity and maintain growth momentum as you bridge to your next milestone, on your timeline and terms. Contact us to speak to a member of our team today to find out how we can help support your next project.

    12 months

    Loan term up to 12 months

    65%

    Lending up to 65% Loan to Gross Development Value including interest

    £10,000,000

    Loans from £500,000 to £10,000,000

    Part Built Site with Complication in Canford Cliffs, Poole design plans

    Key Features of Our Development Exit Loans

    • Loan Size: £500,000 to £10,000,000
    • Loan Term: Typically 3–12 months, with longer terms considered
    • Security: First legal charge over completed development
    • Rates: Negotiable based on complexity and loan size
    • Project Stage: For schemes at or near practical completion

     

    Whether you’re looking to refinance a completed scheme, unlock equity for new opportunities or improve cash flow, our experienced team is here to help you navigate the next phase with confidence. Get in contact with a BLG team member today to find out how our flexible development exit finance solutions can support your ongoing growth.

    Share Your Project Details And Give Us A Call

    If you’re interested in finding out if a development loan could work for you, simply share some details and get in touch. Our team of property finance experts will have a chat with you to see if we can help.

    We’ll Find The Right Solution Together

    Tell us about your project, and using our knowledge and experience, our team will work with you to create a customised solution that fits your goals. We’ll also walk you through the process, so you understand the next steps.

    Get A Quick Answer

    We’ll provide you with our heads of terms quickly. If they meet your needs, just send us a full application to proceed. From there, a credit review will take place, leading to an offer backed by our commitment.

    Funds Are Released After Due Diligence

    Once our verification process is complete (typically 6-8 weeks depending on the complexity), you can expect to receive your funds. Now you can get back to what you do best while we take care of the financing.

    How Development Exit Loans Benefit Your Cash Flow and Growth Strategy

    • De-risk Your Position: Transition out of high-cost development finance and reduce pressure to sell units prematurely.

    • Maximise Sale Values: Take time to optimise your exit, holding out for stronger offers without looming finance deadlines.

    • Release Equity to Reinvest: Use built-up equity to fund new acquisitions or pipeline developments, without waiting for full sales completion.

    • Enhance Cash Flow: Free up working capital for business operations or to maintain financial flexibility.

     

    At BLG, we offer more than funding, we provide partnership. Our development exit bridging loans are designed with experienced developers in mind. With fast, decisive underwriting, a proactive credit approach, and a deep understanding of the development lifecycle, we help you transition smoothly from one milestone to the next.

    Whether you’re securing breathing space post-completion or gearing up for your next site, our developer exit loan facility gives you the agility and support to stay one step ahead in a competitive market. Want to learn more about how our development exit loans can support your next move? Speak to a BLG team member today to explore your options.

    ​

    Contact Us Today

      Projects Funded With Bridging Loans From BLG​

      Bridging Loan for Victorian Terrace House in Battersea
      Kitchen with island and dining table

      WHAT OUR CUSTOMERS SAY ABOUT US

      "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

      “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

      “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

      “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

      "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

      “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

      “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

      “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

      “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

      “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

      “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

      “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

      “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

      “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

      “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

      “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

      Tell us how we can help you.

      Growth Guarantee Scheme (GGS)

      Growth Guarantee Scheme (GGS)

      by | Jul 8, 2024

      About Growth Guarantee Scheme

      The successor scheme to the Recovery Loan Scheme, The Growth Guarantee Scheme (GGS) launched in July 2024 and is designed to support access to finance for UK small businesses as they look to invest and grow.

      The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If BLG can offer a commercial loan on better terms, we will do so.

      Growth Guarantee Scheme-backed facilities are provided at the discretion of BLG. We are required to undertake our standard credit and fraud checks for all applicants.

       

      Proud to be supporting British businesses

      BLG specialises in providing property development finance to UK SME property developers. We are delighted to receive accreditation from the British Business Bank as a lender under the Growth Guarantee Scheme (GGS).

      We are proud to be supporting British businesses navigate through these uncertain times by providing property-secured loans through this government-backed scheme.

      We will be offering development finance through the G scheme with flexible loan structures to support individual requirements.

      To discuss your Growth Guarantee Scheme (GGS) requirements, contact us today to find out more.

      Get In Touch

      Scheme Features

        • Up to £2m guaranteed business group: The maximum amount of a facility provided under the scheme is £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million per business group for Northern Ireland Protocol borrowers.
        • Term length: BLG typically offer term loans from 12 months up to 2 years
        • Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing Growth Guarantee Scheme, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for.
        • Pricing: Interest rates and fees charged by BLG will vary and will depend on the specific lending proposal. BLG pricing will take into account the benefit of the Government guarantee.
        • Personal Guarantees: Personal guarantees can be taken at the BLG discretion, in line with our normal commercial lending
          practices. Principal Private Residences cannot be taken as security within the Scheme.
        • Guarantee is to BLG: The scheme provides the lender with a 70% government-backed guarantee against the
          outstanding balance of the facility after it has completed its normal recovery process. The
          borrower always remains 100% liable for the debt.
        • Decision-making delegated to BLG: Growth Guarantee Scheme-backed facilities are provided at the discretion of BLG. BLG are
          required to undertake our standard credit and fraud checks for all applicants.
        • The assistance provided through Growth Guarantee Scheme, like many Government backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. Find out more about GGS subsidies.

      Eligibility Criteria

      • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group)

      • UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity.

      • Viability test: BLG must consider that the borrower has a viable business proposition
      • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings
      • Subsidy limits: Borrowers will need to provide written confirmation that receipt of the Growth Guarantee Scheme facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.

       

      Please note, the following are not eligible under Growth Guarantee Scheme:

      – Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
      – Public sector bodies
      – State-funded primary and secondary schools.

      You will need to provide certain documents when you apply for a Growth Guarantee-backed facility. Please refer to our Lending Criteria for general requirements.

      For more information on our Growth Guarantee Scheme support for development finance, please contact us to discuss.

      BLG’s GGS funding is dedicated to supporting UK SME property developers in development finance. We do not offer cashflow loans under GGS.

      Business Finance Support

      The British Business Bank’s Business Guidance pages have a range of guidance and resources for businesses, including information on how to manage your cashflow and where to find independent advice. 

      See further guidance and resources

      The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

      Visit: www.british-business-bank.co.uk/finance-options/debtfinance/growth-guarantee-scheme 

      What Types Of Projects Are Eligible For The Growth Guarantee Scheme Via BLG?

      Via BLG, the Growth Guarantee Scheme allows for UK SME property developers looking to finance development projects. BLG does not offer cashflow loans under the scheme, focusing instead on property-secured loans for developments, including residential, commercial, and mixed-use projects.

      How Much Funding Can I Receive Through The Growth Guarantee Scheme?

      The maximum funding available under the GGS is up to £2 million per business group for borrowers outside the Northern Ireland Protocol. For borrowers within the Northern Ireland Protocol, the maximum is £1 million. The exact amount will depend on the specific needs of the development project and the borrower’s eligibility.  Additional development finance loan amounts, albeit non guaranteed are available through BLG.

      How Do I Apply For The Growth Guarantee Scheme?

      To apply for the GGS through BLG, you’ll need to provide details about your development project, financial information, and other relevant documents. Contact BLG directly to discuss your requirements, and our team will guide you through the application process, including the necessary documentation and assessment steps.

      Can The GGS Be Used Alongside Other Financing Options?

      Yes, businesses that have previously accessed the CBILS, CLBILS, BBLS, or RLS schemes before June 30, 2024, can still apply for the GGS. However, previous borrowing under these schemes may reduce the maximum amount eligible under the GGS.

      How Does The Growth Guarantee Scheme Affect My Equity In The Project?

      The Growth Guarantee Scheme is a loan facility, so it does not directly affect your equity in the project. However, the loan terms and any personal guarantees required may have implications for your overall financial position. BLG can provide ongoing guidance on how the GGS fits within your broader financing strategy.

      What Happens If My Project Experiences Delays Or Cost Overruns?

      In the event that your project faces delays or cost overruns, BLG will work with you to assess the situation and explore possible adjustments within the framework of the scheme. It’s important to communicate any challenges early to find a solution that aligns with your loan terms.

      Contact Us Today

        Need to know more?

        To discuss your Growth Guarantee Scheme (GGS) requirements, please email us at [email protected] or call us to discuss.

        Get In Touch

        WHAT OUR CUSTOMERS SAY ABOUT US

        "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

        “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

        “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

        “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

        "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

        “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

        “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

        “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

        “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

        “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

        “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

        “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

        “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

        “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

        “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

        “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

        Tell us how we can help you.

        Recovery Loan Scheme (RLS)

        Recovery Loan Scheme (RLS)

        by | Oct 18, 2022

        From 1st July 2024, the Recovery Loan Scheme has been extended and rebranded to the Growth Guarantee Scheme. Get more information on the Growth Guarantee Scheme.

         

        What is the Recovery Loan Scheme (RLS)?

         

        The new iteration of the Recovery Loan Scheme (RLS) launched in August 2022 and is designed to support access to finance for UK small businesses as they look to invest and grow.

        The Recovery Loan Scheme aims to improve the terms on offer to borrowers. If a lender can offer a commercial loan on better terms, they will do so.

        Businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2022 are not prevented from accessing RLS from August 2022, although in some cases it may reduce the amount a business can borrow.

        Recovery Loan Scheme-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.

         

        Proud to be supporting British businesses

        BLG specialises in providing property development finance to UK SME property developers. We are delighted to receive accreditation from the British Business Bank as a lender under the Recovery Loan Scheme (RLS).

        We are proud to be supporting British businesses navigate through these uncertain times by providing property-secured loans through this government-backed scheme.

        We will be offering development finance through the RLS scheme with flexible loan structures to support individual requirements.

        To discuss your Recovery Loan Scheme (RLS) requirements, please email us at [email protected] or call us to discuss.

        Get In Touch

        Scheme Features

         

          • Up to £2 million facility per business group: The maximum amount of a facility provided under the scheme is £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million per business group for Northern Ireland Protocol borrowers.
          • Term length: BLG offer term loans from 12 months up to 2 years.
          • Personal Guarantees: Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
          • Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.
          • Subsidy: The assistance provided through RLS, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling two-year period. Any previous subsidy may reduce the amount a business can borrow.
          • All borrowers in receipt of a subsidy from a publicly-funded programme should be provided with a written statement, confirming the level and type of aid received.
          • Borrowers will need to provide written confirmation that receipt of the RLS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.
            – Northern Ireland Protocol: All borrowers will need to answer some questions to determine whether they are inside or outside the scope of the Northern Ireland Protocol, to determine the relevant subsidy limit and hence the potential maximum amount they can borrow under RLS.
            BLG’s RLS funding is dedicated to supporting UK SME property developers in development finance. We do not offer cashflow loans under RLS.

         

         

        Eligibility Criteria

         

        • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group).

        • UK-based: The borrower must be carrying out trading activity in the UK. No Covid-19 impact test required: Unlike with the previous phases of the scheme, for most borrowers there is no requirement to confirm they have been affected by Covid-19. For charities and Further Education colleges, confirmation of Covid-19 impact will still be required in some instances.

        • Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.
        • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.
        • Purpose: the facility must be used to support trading in the UK and cannot be used to support certain export related activities. There are certain restrictions on the use of proceeds of facilities in the agriculture, fisheries and aquiculture, and road freight transport sectors for borrowers impacted by the Northern Ireland.
          Please note, the following are not eligible under RLS:          – Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
          – Public sector bodies
          – State funded primary and secondary schoolsYou will need to provide certain documents when you apply for an RLS-backed facility. Please refer to our Lending Criteria for general requirements.Decision-making on whether a business is eligible for RLS is fully delegated to the British Business Bank’s accredited RLS lenders. For more information on our Recovery Loan Scheme support for development finance, please contact us to discuss.

        Business Finance Support

        The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

        See further guidance and resources

        The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

        Visit http://www.british-business-bank.co.uk/recovery-loan-scheme

        Need to know more?

        To discuss your Recovery Loan Scheme (RLS) requirements, please email us at [email protected] or call us to discuss.

        Get In Touch

        WHAT OUR CUSTOMERS SAY ABOUT US

        "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

        “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

        “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

        “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

        "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

        “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

        “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

        “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

        “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

        “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

        “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

        “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

        “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

        “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

        “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

        “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

        Tell us how we can help you.

        Residential Development Finance

        Residential Development Finance

        by | Mar 15, 2021

        Residential Property Development Finance Lenders

        We offer extensive experience to assist residential developers in navigating the challenges often posed by traditional high street banks. Our expertise enables us to provide tailored financial solutions that empower you to secure the funds required for purchasing land and constructing various types of properties, including houses, flats, eco-homes, and mixed-use buildings.

        In addition to initial development financing, our residential development finance options include access to top-up funds and refinancing solutions for existing residential development loans, specifically designed for build-to-let landlords. We are committed to offering the financial support you need to advance your residential projects and achieve your development goals efficiently.

        Residential Development Loans

        • Provides bespoke residential property funding solutions for residential developers across the UK
        • Suitable for building or converting one home or hundreds, we will help you choose the right solution to help you build while maximising your profit.
        • Available to housebuilders, developers and intermediaries on competitive terms
        • Decisions made quickly so that developers can move quickly to purchase and secure their site or, if the site is already owned, to begin the building works.
        Enquire About Our Bespoke Finance Options

        Choose Funding For Your Next Project:

        Stretch Senior Development Finance

        Loans up to 85% of costs (90% including rolled-up interest), from £1,000,000 to £15,000,000. Our most popular finance solution for developers.

        Learn About Stretch Senior Finance

        Build To Let Development Finance

        Funding for letting/private sector rental for professional landlords. Available for schemes with 3+ units. Lending up to 70% open market value or 75% restricted investment value.

        Learn About Build To Let Finance

        Lending Criteria

        While every BLG loan is carefully structured to meet the unique requirements of your specific property developments but this general criteria typically applies.

        See Our Lending Criteria

        Mezzanine Development Finance

        BLG does not provide standalone mezzanine finance, we work with a focused panel of mezz providers who may offer additional top-up facilities for your property developments.

        Learn About Mezzanine Finance

        Your Next Project Starts with the Right Finance

        Student Accommodation Development Finance

        Specialist funding to help you build or convert high-quality student housing. Ideal for developers targeting key university cities.

        Learn More

        Ground Up Development Finance

        Targeting a new-build project? Get tailored funding for residential or commercial schemes starting from land. For experienced or first-time developers.

        Learn More

        Permitted Development Finance

        Fast, flexible finance for converting commercial properties under permitted development rights. Loans up to £15 million, with terms up to 24 months.

        Learn More

        Senior Debt Development Finance

        Secure the core funding you need to deliver residential, commercial or mixed-use schemes. Scalable loans up to £15 million with flexible terms to match your build.

        Learn More

        First Time Development Finance

        Straightforward development funding for new and inexperienced developers. Loans up to £15 million, with flexible terms and expert support throughout the build.

        Learn More

        Typical Residential Property Funding Terms

        Most residential property funding ranges between £1 million to £15 million or more. The release of funds can be staggered over the project’s timeline, which is a popular financing option.

        A staggered release of the residential development loan keeps interest payments lower than accessing all the funds at the outset. The interest rates vary from lender to lender and are usually based on risk and the project’s size. Each lender views risk and project size differently, and we will help you find the option that makes the most sense for you.

        The residential property development loan term usually has a duration of 12 to 24 months. However, it can take several weeks to complete the application process and secure the funding, so it is best to apply as early as possible. If you have a tight deadline, please let us know.

        We offer residential property funding to individuals, limited companies, partnerships, LLPs, and overseas borrowers with a UK limited company.

        Repaying Residential Development Loan

        At the end of the loan term, you will need to pay back your loan. This usually happens under one of three scenarios.

         

        1. You may sell the homes or flats and use the sale to pay back the loan, leaving you with your profit.
        2. Refinance the units with a buy to let mortgage if you are intending to let out the properties and build a property portfolio.
        3. A development exit finance, which is a short-term loan with a lower interest rate. This option is ideal for projects where a buyer is not in place, and you will need time to market and sell the properties, beyond the timescale of your original loan.

        Secure Your Finance

        Whether you are looking for stretch senior development finance, commercial development finance, or build to let development finance, BLG is ready to help you secure the residential property development loan you need. We also help arrange mezzanine development finance working with third-party mezzanine funding providers.

        BLG has a patient team of experts ready to help. We offer support from pre‐sale to purchase and completion. Our goal is to help you build, so contact our team today to find the right residential development loans to suit your needs.

        What Our Customers Think

        "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

        “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

        “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

        “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

        "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

        “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

        “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

        “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

        “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

        “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

        “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

        “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

        “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

        “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

        “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

        “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

        Projects Funded With Residential Development Loans From BLG​

        Student Accommodation Conversion from Former Victoria Hotel in Leeds
        Funding for New Client Facing Project Challenges
        Completed residential development finance case study - exterior shot of property
        Executive Houses Completed Ahead of Schedule and Exceeded Sales Predictions
        Second Loan to Support Previous CBILS Client on 21-Unit Scheme in Cheddar
        Cheddar Gorge 21-unit development Case Study
        Ambitious Build Project with Severely Restricted Site Access in Portishead
        46 Apartments with Ground Floor Commercial Space in Bury St Edmunds
        Image of the 46 Apartments with Ground Floor Commercial Space in Bury St Edmunds the outside of the building
        Part Built Site with Complication in Canford Cliffs, Poole
        Developer Exit Loan, Modern Houses in Southwest London with Distinctive Design
        Modern house with brickwork, large windows and balconies
        Waterfront Houses with Private Access to the Beach
        Modern houses with large glass windows
        BLG Helps Developer Overcome Planning Issues
        Wooden fronted terraced houses
        Block of Flats in Sought-After Area, Purley
        front of a 3 storey block of flats
        Centrepiece with Stylish Design, Croydon
        Stylish house with white bricks and wooden cladding

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