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Bridging
Loans

Bridging Loans For Property Developments

Bridging loans serve as a valuable financing tool for property developers embarking on new development ventures. These short-term loans offer a quick and flexible solution, providing the necessary capital to cover initial costs such as land acquisition, planning permissions, and early construction expenses. This financial support allows developers to kickstart their projects without delay, ensuring that progress can begin immediately.

By securing a bridging loan, developers can maintain momentum while they arrange more permanent, long-term financing solutions. This can be particularly advantageous in competitive markets where opportunities need to be seized quickly. Furthermore, bridging loans can be tailored to meet the specific needs of each project, offering a customised approach that aligns with the unique timeline and financial requirements of the development.

They not only facilitate the early stages of property development but also enhance a developer’s ability to act swiftly and efficiently. This makes them an essential component in the toolkit of any property developer looking to navigate the complexities of project financing with confidence and agility.

 

 

12 months

Loan term is typically up to 12 months but longer term can be considered

75%

​Loan to Values generally up to 75% including interest

£10,000,000

Loans from £500,000 to £10,000,000
BLG Development Finance funded site_NrCoventry-min
Brewery Meadows building
Multiple houses under development

Typical Guidelines

  • Loans from £500k to £10m
  • Generally, loan term up to 12 months but longer term can be considered
  • Loan to Values considered on a case-by-case basis but generally up to 75% including interest
  • Rates negotiable on complexity and debt quantum based upon a 5% annual BLG base rate
  • Existing projects that have reached practical completion

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 for Bridging Loans

Our Bridging Loans offer a quick and flexible solution, providing the necessary capital to cover initial costs such as land acquisition and planning permissions ahead of the construction and development of new buildings. This financial support allows developers to kickstart their projects without delay, ensuring that progress can begin immediately.

Throughout the housebuilding lifecycle, BLG provides a high level of support to its clients, including ongoing advice and guidance on market trends, financing options, and exit strategies.

BLG offer bridging loans for the following purposes:

  • To acquire a new development site. This can include financing for land acquisition, site preparation, and planning permissions. We can even potentially help if the site has a limited or imperfect planning consent, working with developers to find creative solutions to financing challenges.
  • To release funding from an existing transaction to make new investments. BLG can provide finance solutions to help developers release funds from existing projects and reinvest them in new opportunities.
  • To release funds on completed developments for cashflow or other business needs. We can provide development exit loans to help developers release funds from completed developments for cashflow or other business needs. This can help developers to reduce finance costs, manage their cashflow more effectively, and fund their next project.
  • BLG can provide short to medium-term finance solutions for commercial or other property assets. This can help businesses to meet their funding requirements and manage their cashflow more effectively.

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    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.”

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